Vancouver Sun: B.C. first-time homebuyers loan program sparks debate, concern

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Jennifer Saltman and Rob Shaw | December 16, 2016

Quoted from the article:

NDP housing critic David Eby said the province is encouraging buyers to go deeper into debt. He said it flies in the face of the Canadian Mortgage and Housing Corporation’s new stress tests, designed to gauge whether a buyer could still pay their mortgage if interest rates rose to the five-year standard rate of 4.64 per cent.

“The federal government is trying to rein this in with changes they’ve made, and the B.C. government is saying borrow more money,” said Eby. “It’s a huge risk to take.”

Tsur Somerville, UBC’s director of the Centre for Urban Economics, agreed. 

“They’re trying to cool down the housing markets, and now you have Christy Clark trying to give people extra gas (for the fire),” Somerville said.

Somerville and Eby both said the province should be building more affordable housing to help low-income earners.

Read the full article: http://vancouversun.com/news/local-news/b-c-government-offers-down-payment-loans-to-first-time-homebuyers