Taxpayers should not carry the risk of borrowers’ second homes

Ben Rabidoux calls for the Canadian Mortgage and Home Corp (CMHC) to remove its Second Home Program which grants loans to present mortgage owners to obtain new loans for a second dwelling place.  Most of these properties are either cottages or smaller units that the home owners use for a vacation place or a pseudo-dorm for their children studying in college.
Rabidoux contends that home owners who can pay for a second home are affluent enough to do it themselves, without the help of the Crown Corporation that provides the funds through the taxes paid by citizens.  He argues that the Second Home program favors the privileged while placing the burden on the taxpayer.  He also cites reported abuses made by businessmen who use the program to pay only five percent for new properties; under current rules, these businessmen would have been categorized as investors and required to pay 20 percent on their properties.

More Mortgage Guide