Ontario cracks down on real estate speculation with hike to foreign homebuyer tax
Posted March 29, 2022 5:27 pm.
Last Updated June 27, 2022 4:42 pm.
In a bid to make it easier for Ontarians to purchase homes while at the same time making it harder for foreign investors to “turn a quick profit” in the red hot housing market, the province announced Tuesday that it’s hiking the non-resident speculation tax and making it provincewide, as of Wednesday.
The tax, which currently stands at 15 per cent, will jump to 20 per cent. It currently only applies to homes purchased in the Greater Golden Horseshoe Region, but will be provincewide once the changes come into effect on March 30, 2022.
The province said in a release Tuesday that the moves “will strengthen efforts to deter non-resident investors from speculating on Ontario’s housing market and help make home ownership more attainable for Ontario residents.”
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“Young families, seniors and workers are desperate for housing that meets their needs. But a lack of supply and rising costs have put the dream of home ownership out of reach for too many families in the province,” Minister of Finance, Peter Bethlenfalvy, said in a release.
“That is why our government is adopting the most comprehensive Non-Resident Speculation Tax in the country. Our government is working to increase supply and help keep costs low for Ontario families and homebuyers, not foreign speculators looking to turn a quick profit.”
The province says it will also eliminate loopholes “by focusing Non-Resident Speculation Tax relief eligibility to only newcomers who commit to laying down roots in the province long-term” and work with municipalities to create a Vacant Home Tax.
The City of Toronto has already introduced a Vacant Home Tax, with one in the works for Ottawa, the province said, noting that all municipalities have the authority to establish the tax through the Municipal Act.
