Updated July 11, 2018
Failure of the General/ConFederal and Ontario government departments of Finance/Revenue, Economics, Social Policy, Housing Policy, Landlord-Tenancy Policy, Taxation of HST, Income, Capital Gains, World-wide Income etc, Non-Resident Investment Policy and attitudes towards Tax Deferrals, Avoidance, Evasion and “they’ll never find me” Scofflaws to “nip” the Real Estate Price escalation as it moved from “recovery & appreciation” to “speculative”, “frothy” and finally to “irrational exuberance”
Notwithstanding the fact that there were an elongated series of “underwriting tightenings & stress-testings” at CMHC and the Lenders from ~2007 onward
PLUS some clamping down by CRA on Principal residence declarations
AND even though I really like the “Declaration of Intentions” that the Buyer must make now when arranging to pay the Ontario Land Transfer Tax (it really will help finding HST and Income Tax Scofflaws – congrats on this)
SO …. WHY DID ONTARIO WAIT SO LONG?
AND then do EVERYTHING … all at once … in late April 2017?
A boom (that would not speak it’s name) starting in 1996, with a blip in 2008-09 and then the ZERO INTEREST rate stimulus era of “borrow at 2% in a 2% inflation climate” PLUS ‘as an investor it’s deductible’ became a wave, then a rally, a tsunami and then 16 measures announced at once and … poof, not with a bang but a whimper … the lights went out ….
WHY didn’t we think to introduce the +2% Qualifying for all Borrowers earlier – esp given the above paragraph on low interest and the HELOC phenomenon and MONO-Line Originations and off-loading to the CMHC-portfolio basket … and all that …why didn’t we slow it down in 2014-15. …. we are all to blame … not just the not-any-more-brilliant-than-we-are Stewards of the Crown’s Assets, Treasury and Citizenry in Ontario and Ottawa