Foreign nationals who want to buy a house in Ontario are going to be hit with a 25 per cent tax starting Tuesday.
The province raised the non-resident speculation tax on homes purchased by foreign nationals from 20 to 25 per cent, which they say is now the highest in Canada.
Back in March, the Ford government increased the tax from 15 per cent to 20 per cent and expanded it to the whole province instead of just the GTHA.
The tax aims to deter non-resident investors from buying up homes in Ontario.
“Young families, newcomers and those all over the province dream of having their own home, a dream which continues to be out of reach for too many,” said Peter Bethlenfalvy, Minister of Finance. “To help Ontario homebuyers, our government is increasing the Non-Resident Speculation Tax rate by another five percentage points to 25 per cent, making it the highest in Canada, to further discourage foreign speculation in Ontario’s housing market.”
“[Monday’s] announcement is another step in our government’s plan to make housing more attainable for all Ontarians,” said Steve Clark, Minister of Municipal Affairs and Housing. “We are working to end Ontario’s housing supply crisis – both by building 1.5 million new homes over the next 10 years, and by ensuring Ontarians are able to access our existing housing supply. These measures are a clear indication of our commitment to do precisely that.”