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Letter: Stop foreign aid and downpayment requirements for home buyers

Purchasers must pay a five per cent down payment on real estate sales of less than $500,000

Stop foreign aid and downpayment requirements for home buyers

Each year, our federal government gives out foreign aid to 80 countries.

In one year, the federal government gave out $6.1 billion in foreign aid. $254,028,156 was given to Afghanistan. $106,255,020 was given to Iraq.

Why? This is outrageous when we have our own Canadian citizens sleeping in the streets outside.

If this foreign aid stayed in Canada, there would be no people sleeping outside on the streets in Canada.

We also have very high rental rates. The reason for this, is that the federal government has mandated downpayment rules so that citizens buying real estate do not overextend themselves.

Purchasers must pay a five per cent down payment on real estate sales of less than $500,000. Purchasers must pay a additional 10 per cent on real estate sales over $500,000.

Example: a home sells for $800,000. Five per cent downpayment on the first $500,000 is $25,000. Ten per cent downpayment on the next $300,000 is $30,000. That is a total downpayment of $55,000.

This regulation is keeping people out of reach to buying and owning a home, thus the high costs of renting.

Why? A husband and wife both earning high wages, do not have the money for the regulated downpayment requirements but are able to pay high rents. This causes high rental rates for everyone who rents regardless of what range of income they earn.

If the government would relax their downpayment requirements on real estate purchases, and let people deal on their own in arranging mortgages, this would lead to more people buying real estate and bringing the rental rates back down to within reason, because of people moving out of rentals into their new homes.

Time to bite the bullet, and complain to our federal government. If not, then suffer the consequences.

Unbelievable!

Joe Sawchuk

Duncan

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