It might soon get a lot easier to buy a home in Toronto
Toronto mayoral candidate Jennifer Keesmaat wants to help people own a home, and she plans to do it through a new rent-to-own program.
If elected, Keesmaat hopes the new plan, which will help young, low income, and struggling residents work toward owning their home. The program would be funded by a new property tax on luxury homes—those valued at around $4 million and higher.
In a press conference today, Keesmaat announced that the high cost of housing is leaving many concerned and priced out of the city, so the new program would be necessary to help gain access to house ownership.
There is an entire generation of people being priced out of Toronto. They are struggling with debt, have little saved for retirement, and have seen the home ownership ladder kicked out from under them. #Keesmaat4Mayor #topoli pic.twitter.com/U1lC2GoETz— Jennifer Keesmaat (@jen_keesmaat) October 4, 2018
"The most fortunate among us, the people who have done best at the highest end of Toronto’s housing market, can afford to contribute a little more to help people get their start," she said.
As Mayor, I will implement a Rent-to-Own home ownership program, focused on those who are are having a hard time making the leap from renting to owning. It will give Torontonians an opportunity to build equity and invest in their future. #Keesmaat4Mayor #topoli pic.twitter.com/KgpDcFXUP2— Jennifer Keesmaat (@jen_keesmaat) October 4, 2018
Here's how it would work: a down-payment toward owning the home would be paid via monthly instalments. At the end of the payment period, a tenant can enter into an ownership arrangement since the equity will have accumulated.
Another option consists of the City or housing program sharing ownership of a home to lower the price of the mortgage.
Considering the extremely staggering cost of Toronto's housing market, the plan is sure to resonate with many. People are leaving the city for cheaper accommodations elsewhere, and the housing bubble is reaching new proportions.
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