Housing incentive could help buyers – but real estate agent warns of increased debt

A Saskatoon man hoping to sell his house says a new federal incentive will help it sell quicker.

Darrell Braun said his modest Caswell Hill home will be a good fit for the first-time homebuyers taking advantage of the program.

“It’s a lot of young families coming into their first home and I think in our particular situation, yeah I think it can make a difference selling the house, just giving that person the incentive to make your next step.”

Set to start Sept. 2, the incentive will offer homebuyers who make less than $120,000 a year an interest-free loan up to five per cent for a preexisting home and 10 per cent for a new build. The loan is capped at $480,000.

However, Saskatoon based real estate agent Ryan Bamford said the incentive could create increased debt for some homebuyers as the housing market continues to struggle.

“It is nice that it will help to stimulate the economy but these people will have to pay it back, but what will happen if it keeps going down, because we’ve had a four-year decline in home prices in Saskatoon and the consumer confidence isn’t as good as it could be.”