小蓝视频 voters tuning into Tuesday’s only televised debate between party leaders may have been pining for more specifics on housing plans ahead of this month's provincial election.
With the Oct. 19 contest less than two weeks away, and with early voting set to begin tomorrow, key details of both the 小蓝视频 NDP’s and 小蓝视频 Conservatives’ plans remain elusive.
The party leaders “need to be very specific about how their plan would be implemented and how they are going to pay for it,” said Ross McCredie, CEO of Sutton Group Realty Services Ltd.
NDP Leader David Eby has proposed an initiative to fund 40 per cent of first-time home purchases, while Conservative Leader John Rustad has spoken frequently of a $900-million “Rustad rebate.”
“I was a little disappointed because it’s like things need to be 140 characters on Twitter now – but that doesn’t give you details on what their actual plan is,” McCredie said.
The NDP’s Opening Doors to Homeownership plan
A highlight of the NDP’s housing plan is for the province to finance 40 per cent of the cost of a first home for middle-income earners at a low interest rate. The program would apply to 25,000 newly constructed units. Buyers would repay the government loan when they sell the unit, and the province would be entitled to 40 per cent of any increased equity in the home.
The $1.29-billion NDP proposal received only brief mentions during Tuesday’s debate.
McCredie questioned why the plan focused on a relatively small group of people such as first-time buyers, as well as a select product like new construction.
He suggested it would make more sense for first-time buyers to wait longer, save up more, skip the program and keep the entire amount of asset appreciation. McCredie also questioned what the program meant for young couples who already bought their first home but want to start a family and upgrade to a larger unit.
“How do you verify who is to get approved, that someone qualifies for that loan or mortgage, and how do you then, when someone sells, how do you track that and make sure you’re going to get paid back the money?” he said.
“It worries me that the government is going to get in the business of real estate.”
Michael Geller, an urban planner and real estate consultant, had other concerns.
He wondered what will happen if program participants need to sell the property within a few years at a loss. After accounting for initial transaction costs, property transfer taxes, legal fees and GST, is it possible these early sellers could lose their down payment?
“We talk about wanting to bring down the cost of housing,” Geller said. “We want to make it more affordable, which means making it cost less than it does today. And so we should not ignore the fact that if we are successful in bringing down the price or value of housing, we are potentially putting some of the people who participate in this provincial program into financial difficulty.”
Geller also said the NDP program would create a disincentive for people to perform upgrades to their first home, such as bookshelves, cabinetry, flooring, appliances, blinds and so forth.
“You’re removing the incentive for people to decorate, upgrade or improve their apartment because the province will get 40 per cent of the upgrade,” he said.
The “Rustad rebate”
While the so-called “Rustad rebate” came up a few times in Tuesday’s debate, its details remain unclear.
The 小蓝视频 Conservatives’ website currently states $3,000 per month of rent or mortgage interest costs will be exempt from provincial income taxes.
“This will be achieved by issuing a tax credit worth 5.06 per cent of eligible housing costs, equivalent to the rate of 小蓝视频’s base tax bracket,” the website states.
Budget 2026 will provide “immediate relief … by exempting $1,500 per month, increasing by $500 per year to the full level of $3,000 per month. … The 2026 budget impact will not exceed $900 million, and we will design a targeted tax credit that ensures the relief goes to people who need it to get ahead in life,” according to the website.
It remains unclear whether the program constitutes a rebate or a tax credit. It’s also unclear how money will be distributed to 小蓝视频 residents, such as being credited toward their Notice of Assessment from the Canada Revenue Agency.
“I don’t think I’m alone when I say it’s hard to fully understand how it’s going to work,” said Geller.
“I hope between now and election day, the Conservatives give some better explanations with examples so that we can see how this program would work both in the initial term and over time.”
McCredie agreed.
“I don’t think they’ve articulated the details of whether it’s a tax credit or rebate very well,” he said.
McCredie said the Conservative plan would probably cost less to administer, since credits or rebates are fairly straightforward to implement and would not require as much bureaucracy. He also said the Conservative plan would apply to a much wider group – homeowners and renters – compared to the NDP plan, which narrowly focuses on first-time buyers purchasing pre-sales.
During the debate, Eby referred to the “Rustad rebate” as the “Rustad long wait.”
He claimed it won’t fully kick in until 2029.
Eby also said it excludes young people who live with their parents or in multi-generational homes, and that it benefits owners of expensive properties the most.
Close race anticipated
With the latest polling indicating a tight contest, Eby and Rustad are likely testing out their messaging rather than formulating detailed housing policy.
Meanwhile, 小蓝视频 Green Leader Sonia Furstenau’s opposition to private sector participants like Real Estate Investment Trusts is unlikely to change the realities of the provincial economy.
BIV reached out to the NDP and Conservative campaigns seeking clarification of their competing housing proposals. An NDP staffer declined to speak on the record, while the Conservatives did not provide answers to any of BIV's questions.
“Politicians get into these election cycles and throw in these new schemes,” said McCredie. “I want to see housing policies that are spread over a long period of time for all people that live here.”
