Swan lake towns . The rental market is tight. It is appropriate to consider the owner’s pressure to prevent short speculation. Wu Shusheng, vice president of the Toronto Chinese Real Estate Professional Association, points out that the hot moves launched by Ontario last year have been digested by the market.
It does not work much today, but the federal loan stress test set the target of an additional 2% increase is too high, making it difficult for consumers to borrow money to reduce their chances of home ownership. He mentioned that rent control sets a ceiling of 1.9% for rent increases. As landlords have to face a cost increase of about 3% or more, the rental market is even tighter. I hope the government will face up to the plight of landlords.
Referring to the Toronto Real Estate Bureau summit held yesterday on the analysis of buildings in the Durham District of the Greater Toronto area, Wu Shusheng, a senior practitioner of the local real estate industry, believes that the area most affected by various government policies is believed to be the emerging cities of buildings such as Toronto and York District, Durham District and Hamilton City, whose property prices have always been lower, and it is not too high to borrow a mortgage in this area compared with many cities and York District.
He believes that Ontario launched 16 hot measures to cool the property market in April last year, which has been gradually digested by the market in the past year, and its influence on the property market is not as serious as it was when it was first launched. on the contrary, it is the new policy launched by the federal government this year that requires applicants for bank mortgages to pass the current mortgage rate plus 2%, resulting in quite a lot of prospective home buyers. In particular, those who want to “please climb another tall building” are forced to give up their home ownership plan because they cannot pass the stress test and cannot borrow money.
Wu Shusheng believes that in order to remove the psychological barriers of home buyers, the federal government should use a reasonable interest rate as the mortgage stress test criterion. At present, the additional 2% mortgage interest rate is used as the stress test benchmark, and the threshold is indeed too high. After research, the industry believes that adding 0.75% to the current mortgage premium is actually more realistic and reasonable.
He said that provincial elections were just around the corner, and governments at all levels were worried that the domestic property market had attracted short-term speculators and led to a bubble in domestic buildings. Wu Shusheng believes that instead of adopting an across-the-board approach to cool the property market, it would be more effective to adopt targeted policies, such as charging more capital gains tax from some owners who resell their properties in only one or two years to curb rampant short-term speculation.