Government Intervention & New Home Construction

The recent Bank of Canada interest rate statement, released yesterday, maintained the rate at 5% (which was as expected).

Tiff Macklem, Governor of the BoC stated, "We are observing the necessary signs, but require more time to ensure progress towards price stability is sustainable. The recent decrease in core inflation needs confirmation that it's not just a temporary fluctuation."

In contrast, news from the U.S. indicates persistent inflation issues, deviating from the expected slowdown. Consequently, interest rate cuts in the U.S. are being postponed, affecting Canadian interest rates in turn. Though the Bank of Canada hasn't confirmed a rate cut timeline, there's a positive hint that a slight decrease might be considered in June.

The Federal government introduced a measure Thursday in the mortgage/housing market, allowing first-time buyers purchasing new construction homes with less than 20% down to qualify for a 30-year amortization. This move will marginally improve affordability for homebuyers in a specific market segment.

Alongside the recent federal announcement, first-time buyers, along with extended amortization, can withdraw up to $60K from their RRSPs with an additional 3-year repayment period. This initiative could benefit first-time buyers who have built their RRSPs.

So what sort of housing fits in with these programme announcements?

Granite Homes is gearing up to launch Northside, their newest development at the Woodlawn and Woolwich St. intersection in Guelph. This stacked townhouse project, comprising over 200 units, will be priced from the low $500s. Targeted towards first-time buyers in the Guelph market, these 2-bedroom, 2-bathroom units averaging around 1000 sqft, come equipped with appliances and upscale finishes like quartz counters, upgraded cabinetry, and flooring at entry-level price points.

A low-rise, medium-density project conveniently located near transit, shopping, and commuter routes, Northside fills a void in the market and is poised to attract buyers. The Federal Government's efforts to facilitate financing for projects like Northside aim to support first-time buyers who are struggling to break into the market without breaking the bank.

NOW HERE’S THE EXCITING NEWS:

We have been given front of the line prices & incentives for our our subscribers and clients! Click below to register on our link and we’ll get you all the details and early access to this exciting new project. If this project is anything like their South River collection in Elora and their Beechwood collection of stacked townhouses in Guelph, this project is going to be very popular.

Learn more

So go ahead and take a look at this project & the potential it holds - this could be a great opportunity for you if you’re a first time buyer, or for first time buyers you may know who are trying to break into this tough market.

Thanks for being a subscriber - we’re proud to be able to share these types of opportunities with our readers!

Enjoy the weekend,

Paul Fitzpatrick

Appointment Calendar: https://calendly.com/homegrouprealty

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