2021 federal budget and the CAF

[Lumber]

You are choosing to live in expensive to live areas. Where I live, you can afford a house on minimum wage.

Please tell me where the hell in Ottawa you i can live that won't be "expensive" when the CAF forces me to move there?

 

[PuckChaser]

Please tell me where the hell in Ottawa you i can live that won't be "expensive" when the CAF forces me to move there?

 

[dapaterson]

Please tell me where the hell in Ottawa you i can live that won't be "expensive" when the CAF forces me to move there?

If you're a Capt or Lt(N) your pay (before any allowances) at base IPC puts you in the top 25% of Canadian households for income.

 

[Altair]

Heck, if there was anything I was pissed about in the budget it was the zero help for first time homebuyers.

Waiting for campaign season.

 

[Good2Golf]

Heck, if there was anything I was pissed about in the budget it was the zero help for first time homebuyers.

Waiting for campaign season.

The opposite is happening, including consideration of the banks to increase the mortgage qualifying ‘stress test’ by increasing the % used in the qualifying formula. The Feds are already concerned about trying to cool down the housing market...not heat it up even more.

 

[Eaglelord17]

Please tell me where the hell in Ottawa you i can live that won't be "expensive" when the CAF forces me to move there?

Who says you have to be in the CAF or Ottawa? You choose to make that decision, and like every decision there is pros and cons.

 

[Oldgateboatdriver]

You do realize Alberta is a net contributor, not recipient of equalization, right?

No, it isn't.

How many times do I have to re-explain this? Equalization is paid from the general funds of the federal government. This is money coming from all revenue sources, but mostly income tax and GST, paid by all Canadians. It means that a Quebecer making $100,000 a year makes the exact same contribution towards Equalization payment transferred by the Federal government to Nova Scotia as an Albertan making $100,000 per year, and that a Manitoban making $25,000 makes the same contribution to Equalization payment transferred to Quebec as a Newfoundlander making $25,000.

Basically, it means that every single Canadian, regardless of where they live, makes the exact same contribution as a percentage of what they pay in taxes to the Federal government as the percentage that Equalization aggregate payment in the Federal expense budget is to the general revenues of the Federal government.

Oh! And before you ask: No! If there were no Equalization payments, no Canadian would see a single penny more in his/her/its pocket. The Government would just find something else to open d your money on.

 

[Good2Golf]

No, it isn't.

How many times do I have to re-explain this? Equalization is paid from the general funds of the federal government. This is money coming from all revenue sources, but mostly income tax and GST, paid by all Canadians. It means that a Quebecer making $100,000 a year makes the exact same contribution towards Equalization payment transferred by the Federal government to Nova Scotia as an Albertan making $100,000 per year, and that a Manitoban making $25,000 makes the same contribution to Equalization payment transferred to Quebec as a Newfoundlander making $25,000.

Basically, it means that every single Canadian, regardless of where they live, makes the exact same contribution as a percentage of what they pay in taxes to the Federal government as the percentage that Equalization aggregate payment in the Federal expense budget is to the general revenues of the Federal government.

Oh! And before you ask: No! If there were no Equalization payments, no Canadian would see a single penny more in his/her/its pocket. The Government would just find something else to open d your money on.

No.

I said ‘net’, so when you look at the Federal equalization funds returned to the provinces from General Revenues, Alberta receives NO EQUALIZATION payments in return from the Federal Government given contributions by tax-paying Albertans.

Feel free to directly refer to the Federal Government’s own information on the Equalization Program:

Canada’s Equalization Formula In Brief

...and specifically I will refer to Part 2 of the reference, noting that there are ONLY SIX provinces that receive equalization (see below in yellow) and Alberta is NOT one of them, so....as I said earlier, ALBERTA IS A NET CONTRIBUTOR.

2 Distribution of Payments, 2013-2014​

The total amount of Equalization payments in 2013–2014 is $16.1 billion, an increase of 24.6% from 2007–2008.1 At present, six provinces are eligible for the transfer: Prince Edward Island, Nova Scotia, New Brunswick, Quebec, Ontario and Manitoba. Quebec is the largest recipient of an Equalization payment, accounting for 48.6% of the total amount of Equalization payments in 2013–2014. While Quebec’s large share of Equalization payments is mostly due to its greater population relative to other Equalization-receiving provinces, the province’s proportion of the total amount has risen considerably since amendments were made to the Equalization formula in 2007, in large part because of changes to the formula’s measurement of property tax revenues.

At $2,326 per capita in 2013–2014, Prince Edward Island has the highest per capita Equalization payment; per capita payments are lowest in Ontario, at $230.2

Don’t take my point above as a personal jab at Quebec. It is not. I have been a Quebec resident and I am fully conversant with the relationship between my wallet and my « Relève 1 »

However, that doesn’t make my take on equalization incorrect.

If anything, the information clearly points out that proportionately, PEI leads the field in per capita equalization and the Maritime provinces following closely behind.

Regards
G2G

 

[Altair]

The opposite is happening, including consideration of the banks to increase the mortgage qualifying ‘stress test’ by increasing the % used in the qualifying formula. The Feds are already concerned about trying to cool down the housing market...not heat it up even more.

Oh, I know.

There is a reason I'm waiting till I have 200k saved up.

 

[Lumber]

Who says you have to be in the CAF or Ottawa? You choose to make that decision, and like every decision there is pros and cons.

So, because it's my decision to stay in the CAF, with all the pros this job entails, I am not allowed to complain about any of the cons, such as the housing prices of where I get moved to? Or the money I could lose on a house sale when forced to move at a bad time?

Each and every one of us is where wear because of the sum of every decision we've ever made, each with it's own pros and cons. So by your logic, I can't can't complain about anything at all, because they are the results of my choices? Don't like the liberals? Well, you're choosing to stay in Canada, so suck it up. Don't like the new boots being issued to the forces? Well, you're choosing to stay in the forces. Don't like the traffic on the way to work due to new construction on a major throughfare? Well, you chose to live in this city, and to have that job, and to live where you need to commute, so, suck it up.

 

[Altair]

So, because it's my decision to stay in the CAF, with all the pros this job entails, I am not allowed to complain about any of the cons, such as the housing prices of where I get moved to? Or the money I could lose on a house sale when forced to move at a bad time?

Each and every one of us is where wear because of the sum of every decision we've ever made, each with it's own pros and cons. So by your logic, I can't can't complain about anything at all, because they are the results of my choices? Don't like the liberals? Well, you're choosing to stay in Canada, so suck it up. Don't like the new boots being issued to the forces? Well, you're choosing to stay in the forces. Don't like the traffic on the way to work due to new construction on a major throughfare? Well, you chose to live in this city, and to have that job, and to live where you need to commute, so, suck it up.

You do get dental.

 

[Bruce Monkhouse]

You have every right to whine as he has every right to tell you to suck it up.........

 

[Eaglelord17]

So, because it's my decision to stay in the CAF, with all the pros this job entails, I am not allowed to complain about any of the cons, such as the housing prices of where I get moved to? Or the money I could lose on a house sale when forced to move at a bad time?

Each and every one of us is where wear because of the sum of every decision we've ever made, each with it's own pros and cons. So by your logic, I can't can't complain about anything at all, because they are the results of my choices? Don't like the liberals? Well, you're choosing to stay in Canada, so suck it up. Don't like the new boots being issued to the forces? Well, you're choosing to stay in the forces. Don't like the traffic on the way to work due to new construction on a major throughfare? Well, you chose to live in this city, and to have that job, and to live where you need to commute, so, suck it up.

If you want a cheaper house just go and move to a cheaper area. You chose a job which prevents you from doing so. The CAF does a lot to protect you when you lose money selling a house, but I would also argue its not the best idea to purchase a house knowing your leaving the area in a few years.

I get sick of everyone complaining constantly about housing prices yet refusing to do anything about it. I have friends who live in places like Toronto, barely scraping by, yet refusing to do anything to change that. I am a first generation Canadian. My family left the UK because of the prices and how low your standard of living was. Now we are comfortably in the upper middle class from being some of the historically poorest of the poor. If my family hadn't taken steps to improve our lot and kept complaining about how unfair it is, we would still be very poor and with a lot less wealth.

 

[SupersonicMax]

If you want a cheaper house just go and move to a cheaper area. You chose a job which prevents you from doing so. The CAF does a lot to protect you when you lose money selling a house, but I would also argue its not the best idea to purchase a house knowing your leaving the area in a few years.

I get sick of everyone complaining constantly about housing prices yet refusing to do anything about it. I have friends who live in places like Toronto, barely scraping by, yet refusing to do anything to change that. I am a first generation Canadian. My family left the UK because of the prices and how low your standard of living was. Now we are comfortably in the upper middle class from being some of the historically poorest of the poor. If my family hadn't taken steps to improve our lot and kept complaining about how unfair it is, we would still be very poor and with a lot less wealth.

So, at me current posting, there was no PMQs available when I showed up and no rental below 2500 a month. I ended up buying and I am losing 48K. I feel stuck between a rock and a hard place TBH.

 

[Good2Golf]

So, at me current posting, there was no PMQs available when I showed up and no rental below 2500 a month. I ended up buying and I am losing 48K. I feel stuck between a rock and a hard place TBH.

Hurry up and buy in your mew location...it’s still going up, and quickly!

 

[Navy_Pete]

If you're a Capt or Lt(N) your pay (before any allowances) at base IPC puts you in the top 25% of Canadian households for income.

Average house sale price in Ottawa this month is $799,940.

Even if you put down 20% (~$125k) you still can't afford that on a two ringer salary. Even as a two and half that's out of reach. Forget it if you are a lower rank, .

And sure, no one says you have to be able to buy a house, but rents are also being driven up. I wouldn't want to be posted here right now; the market is insane across the board, plus the vaccine roll out is a bit of a mess, and a lot of places are planning on continuing to work from home at least part time. Might be a good year to try and attach people to organizations while keeping them geographically separate.

 

[PuckChaser]

I'm lucky enough to be able to put 40% down on a house that expensive, and if I straight port my mortgage it goes from $1500 a month to over $2300. Which is fine, if I'm keeping LDA, but it's gone when I get there. I will never move my family to Ottawa to lose ~$800 a month and add 33% to my mortgage payment plus pay $150 a month for scramble parking or be forced to extend my mortgage out 10 years beyond my retirement date. I have absolutely no idea how a young Corporal Signaler or HRA/FSA that's posted to Ottawa with a family can afford to start homeownership without being forced to live in a postage stamp in a seedy neighbourhood.

 

[Altair]

Average house sale price in Ottawa this month is $799,940.

Even if you put down 20% (~$125k) you still can't afford that on a two ringer salary. Even as a two and half that's out of reach. Forget it if you are a lower rank, .

And sure, no one says you have to be able to buy a house, but rents are also being driven up. I wouldn't want to be posted here right now; the market is insane across the board, plus the vaccine roll out is a bit of a mess, and a lot of places are planning on continuing to work from home at least part time. Might be a good year to try and attach people to organizations while keeping them geographically separate.

Yeah, as an NCM,my salary alone would not have gotten me close.

So I've been investing and making sure I had other revenue streams and I was close, so close to having 30 percent down.

Now everyone is bidding 200k over asking and my 30 percent is looking more like 20.

Just brutal, and I know the government won't let the housing market crash, too many people have their savings and retirements tied into them, it's too big to fail now. So they will allow it to overheat and bail out homeowners if a crash occurs, meanwhile those on the outside looking in are screwed one way or another.

 

[Altair]

I'm lucky enough to be able to put 40% down on a house that expensive, and if I straight port my mortgage it goes from $1500 a month to over $2300. Which is fine, if I'm keeping LDA, but it's gone when I get there. I will never move my family to Ottawa to lose ~$800 a month and add 33% to my mortgage payment plus pay $150 a month for scramble parking or be forced to extend my mortgage out 10 years beyond my retirement date. I have absolutely no idea how a young Corporal Signaler or HRA/FSA that's posted to Ottawa with a family can afford to start homeownership without being forced to live in a postage stamp in a seedy neighbourhood.

It isn't going to happen, not on corporal salary alone.

And for all of those who say I don't give the LPC flak, you should see their current first time home buyers plan.

You can't put more than 20 percent down but your mortgage can't be more than 4 times your annual salary.

For those under sgt, that means a house cannot cost more than 300k.

Hahaha, good luck with that.

 

[PPCLI Guy]

My son is a first time buyer here in Ottawa. He lost multiple bids on townhouses in Orleans listed at 400K and going for over 500k. He finally succeeded with a condo townhouse that was listed at 400K and he got it at 530K.

That is insane.