Such a farce: these policies are not about helping first time home buyers, they are about helping sellers find a steady stream of greater fools and to help mortgage and realty companies keep collecting commissions. In the process, young families are like sacrificial lambs to the debt slaughter. Not only are these unproductive financial activities, but they are counter-productive, financially suicidal, in the longer run. The Canadian economy and taxpayers will be paying to clean up this mess for years to come.
A Canadian province has an unusual offer for first-time buyers struggling to enter one of the world’s hottest property markets — a cheap loan to bulk up their down payment.
It’s a gift that may end up fueling a Canadian debt binge and padding the pockets of sellers instead.
Starting Jan. 16, British Columbia — home to Vancouver, the nation’s most expensive real estate market — will start a program to match the nest eggs saved by buyers for their first house by up to C$37,500 ($28,000) or 5 percent of the purchase value. Here is a direct video link.