By
Pace Law

Foreign Buyer Tax Coming To Ontario

April 20, 2017

A foreign buyer’s tax similar to that introduced in Vancouver last year will be coming to Ontario soon, as the government hopes to cool a red hot housing market. New rent control rules will also be put into effect. The Toronto Star reports:

Premier Kathleen Wynne is taking wide-ranging action to protect tenants from massive rent increases and homebuyers from being gouged.

As first disclosed by the Star, Wynne is imposing a 15 per cent foreign buyers’ levy — the non-resident speculation tax — to slow down southern Ontario’s skyrocketing real estate market that the Bank of Canada has warned is unsustainable.

The tax “would apply ‎to transfers of land that contain at least one and not more than six single family residences” and affect buyers who are not citizens or permanent residents as well as foreign corporations.

It will hit all residential transactions in the Greater Golden Horseshoe — including the Greater Toronto Area, Niagara, Kitchener-Waterloo, Barrie, Orillia, and Peterborough.

“This plan balances those needs to stabilize the market and prevent a sharp correction that would be harmful to everyone,” Wynne told reporters at the Williams Landing‎ pub in Liberty Village on Thursday against a backdrop of gleaming condo towers.

As well, rent controls limiting increases on all buildings to the rate of inflation — as long as it is 2.5 per cent or lower — will be introduced. Currently only units built before 1991 are subject to such curbs.

Investors should note that the government is taking aim at those who purchase condos before they are built in the hopes of making a profit later. The CBC:

The government will ban speculators from “assignment flipping” in the pre-construction housing market, the sources say. The move is targeted at investors who put deposits on multiple units at pre-construction prices — typically in condominiums, but sometimes in new subdivisions — then sell the title for profit before the building is complete, a process known as assignment.

Sousa has previously signaled his intent to target such investors, labelling them “property scalpers” who are driving up prices.

Share This Post
Email
Facebook
LinkedIn
Twitter
Trending Posts
Read More Insights
Events
By
Pace Law
Pace Law Firm is always looking to expand our business and elevate it to the next level. On Thursday November 24th, Pace Law Firm attended the Canadian Mortgage Summit (CMS) to hear from the industry’s top mortgage brokers, lenders and solution providers.
Firm News
By
Pace Law
We are proud to announce that Pace Law has become a multi-service firm and is launching a new website to accommodate our growth in different areas of law!
Events
By
Pace Law
The National Day for Truth and Reconciliation takes place on September 30th for the second consecutive year. Each year, September 30th marks both Orange Shirt Day and National Day for Truth and Reconciliation.
Real Estate Law
By
Pace Law
In key Canadian cities, the housing inventory may reach a crisis stage, according to a recent analysis from RE/MAX Canada. The analysis confirms that governments must take quick action to address the critically low supply of available homes.
Personal Injury
By
Pace Law
As the winter months get closer, it is critical to plan ahead and take precautions as needed to reduce the likelihood of mishaps. Nearly 30% of all motor vehicle incidents, according to recent RCMP data, happened on slick, snowy, or icy roadways.
Real Estate Law
By
Pace Law
Two weeks after the provincial administration submitted Bill 109, the More Homes for Everyone Act, 2022, on March 30, 2022, it obtained royal assent on April 14. The last step needed for a legislative measure to become law is royal assent.

Get in Touch

Call us now or fill out the form to discuss your case with an experienced legal professional.

Our Locations

Office Location

191 The West Mall, Suite 1100
Toronto, ON M9C 5K8
Phone: 1-877-236-3060
Fax: 416-236-1809

Office Location

191 The West Mall, Suite 1100
Toronto, ON M9C 5K8
Phone: 1-877-236-3060
Fax: 416-236-1809

Scroll to Top