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Tuesday, July 14, 2020

The Home Ownership Dream

Posted by PattiM

Many of you will have seen in the news this week that Finance Minister Flaherty is changing some of the home financing rules effective April 19th. It has been widely reported this action was taken to slow the possibility of a housing bubble forming in Canada which could have the effect of deepening the recession which the government believes we are starting to rise out of.

Almost all the clients I meet with, who don’t yet have a home, have a dream of owning a home. So, the question most on their minds right now would be do the new rules impact their dream? My considered answer would be … maybe. Helpful, eh?

Actually there is a reason for my middle of the road response. There is more than one way to pursue the dream of owning a home. There is the prudent, planning and saving towards realization of the dream and then there is the almost scatter gun effort. For those who are prudent, planning and saving — it is unlikely the changes will have an impact on them. For those with the scatter gun effect — yes the changes likely will have an impact and they should.

I’ve been amazed at times by the number of clients who meet with me for counseling who are focused on wanting an answer to when they can buy their home to the exclusion of any discussion of planning or saving. These clients are people who have recently done a filing under the Bankruptcy and Insolvency Act. This is an opportunity for them to make a fresh start and with some fiscal discipline finally realize their dream of home ownership. WAIT! There is more to read… read on »