Nanaimo MLA says Liberal lending plan is ‘bad policy’
NANAIMO — The MLA for Nanaimo says a Liberal plan to help first-time homebuyers get into the market has the potential for disaster.
Premier Christy Clark said Thursday the government will provide a 25-year loan for a down payment to a maximum of $37,500 on funds that have been matched by buyers. The loans will be interest-free and payment-free for the first five years.
The NDP’s Leonard Krog says home ownership is wonderful and it’s a goal for the vast majority of British Columbians, but the Liberal plan is the wrong approach.
“Encouraging people to go in debt even deeper than the rules would normally allow is going to lead potentially to a disaster,” said Krog. “If there’s a downturn in the housing market, as will inevitably be, those people will see their equity such as it is disappear and they’re still going to owe the money.”