Benefit or boondoggle? Housing experts chime in on B.C.’s homeowner loans
VANCOUVER — A new interest-free loan program touted by the British Columbia government as a boon to first-time homebuyers who are struggling to save for a down payment is drawing harsh criticism from economists and other experts who pan the proposal as a politically motivated move that is likely to inflate housing prices even further.
The program could end up boosting demand — and therefore prices — by encouraging even more people to compete over the same number of homes, said Joshua Gottlieb of the Vancouver School of Economics.
“It seems like a policy that does not reflect an understanding of the current markets or basic economics,” he said in an interview.
“This is actually not really promoting ownership. This is promoting owning a small share of a home and taking a big risk with other people’s money.”