As the dream of homeownership becomes more and more out of reach for first time homebuyers, Newfoundland and Labrador NDP Leader Jim Dinn pledged that an NL NDP government would step in to help by doubling the provincial first time home buyer’s incentive – continuing the party’s push to make life more affordable for Newfoundlanders and Labradorians.
“Home ownership was once just a simple step in a person’s life. Now – for many – it’s become out of reach,” said Dinn. “Bidding wars have become the norm, with the average homebuyer quickly being priced out in an already inflated market. We know families deserve a better deal on housing and the NL NDP is ready to deliver.”
Housing prices in Newfoundland and Labrador have skyrocketed in recent years, with housing supply failing to keep up with demand. As a result, many young families and first-time buyers have been priced out of the market.
As part of the NL NDP’s push to lower costs for everyday people, Dinn promised to raise the provincial first time home buyers incentive by $1,500 – doubling the credit – giving first time home buyers up to $3,000 to help with their costs. This would be in addition to the federal first time home buyers credit which offers new homeowners a $1,500 tax credit.
“When people can’t enter the market, fewer students stay, fewer families settle, and seniors can’t afford to downsize,” said Dinn. “Working in tandem with our other housing policies, doubling this program would see more Newfoundlanders and Labradorians be able to have their dream of owning a home become reality.”
All first-time homebuyers with total household incomes up to $95,000 will be considered. The program will provide grants of $3,000 to individuals and families to go toward the down payment of a first-time home valued under $400,000 including HST. It will also continue to offer the re-payable loan of up to five percent of the purchase price.
Affordability – especially housing affordability – has been a key focus for the New Democrats, announcing earlier their plans to build 1,000 new affordable housing units per year, bringing in rent control, removing the HST off kids’ essentials, and removing the HST off all home heating.
The current program costs $225,000 per year, and would cost another $225,000 in additional per year funding for a program total of $550,000 per year. The announcement is part of the NL NDP’s fully costed platform which delivers four balanced budgets with a budget surplus of $498 million by 2030.