• . I cannot help but laugh at the Ontario Government’s 16 point plan to manage housing. My first thought was “aren’t these the same folks who messed up our power system, our health system and basically many of our social services”? At Robert Floris’ Mortgage Architects office, we really try to help our clients. This is why I am skeptical when banks and government try to help a situation. Their motives are not altruistic. The two main points of the new plan would be a 15% foreign tax to stop the speculation and the rent controls. Let’s analyze each one. The government is strapped for money so what better way to hinder the market than to collect funds from the tax. Will it help? Who knows, but it won’t hurt the government collecting additional revenue. In addition, they will be putting rental control policies into place. This is a program that has never worked. The result is a greater shortage of rental units as developers back off from building more units until they would get a better rate of return. This will only cripple the rental market. Ironically, it is the government’s fault that we have this housing crisis. Since our economy is weak, we have artificially lowered mortgage rates. Consumers can buy a lot of house at 2.5% for five years fixed. If rates go higher or if there is an economic recession, look out below. I do not expect the new government intervention to do much of anything

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