Canadian banks need to take steps to assist mortgage holders who are struggling to stay above water after a rapid spike in interest rates, according to new guidelines issued Wednesday.
I still think the easiest way to solve the lack of housing issues would be to charge an override premium interest level for second homes and investment homes.
Make it unprofitable for landlords to carry the costs, and voila, more homes on the market.
That, or reverse the taxability of interest on homes. Primary residence? Interest is deductible against earned income. Investment property? No tax breaks on interest paid, only capital improvements. This would also be a huge cost-of-living improvement for lower and middle classes.
Would make for a lot of unhappy boomers with multiple rental properties, but honestly fuck em, they’ve had a good enough ride already.
Just keep kicking the can down the road until there’s literally no other option…
Or, hear me out, bail out principle residences and allow the banks/investors to eat there losses as is predicated in a free market capitalism system. They literally asked for it…
We need to treat primary residence mortgages like taxes. I get the increase in borrowing rates to prevent people from buying things to combat inflation, but it really doesn’t help the cost of living crisis when you price having a place to live out of many Canadians’ budgets.
That’s what I don’t get. Can’t they subsidize lower rates for mortgages on primary residences?
