Ontario brings in foreign housing tax to cool Toronto market

Federal Finance Minister Bill Morneau speaks to the media after talks on housing market in the Greater Toronto Area with Ontario Finance Minister Charles Sousa and Toronto Mayor John Tory in Toronto on Tuesday

If legislation passes, the tax would be effective retroactively to April 21.

A 15 per cent tax on home purchases by non-resident foreigners. "It is about creating stability and addressing affordability in our housing market", she said". "Strengthening Ontario's rental market is an important way our Fair Housing Plan will help make everyday life more predictable, affordable and fair for Ontarians so they can continue to put down roots in the communities they love".

Despite the focus on foreign speculators, the government has admitted it doesn't have good data on the real estate market.

"Most of those projects are now on hold pending a review of this announcement and many of them will be cancelled and not proceed", he said. Prices in Vancouver were down 9 percent in March from a year ago, according to the Canadian Real Estate Association. The index prices for Greater Vancouver and Greater Toronto stood at C$919,300 (US$687,636) and C$772,500 (US$577,830), rising 13% and 29% year-over-year, respectively.

The move comes a week before Ontario unveils its budget on April 27 and two days after the province's Finance Minister Charles Sousa said the government recognizes that "now" is the time to address the issue.

Defending the new measures, Ontario Premier Kathleen Wynn stated at a press conference today: "When young people can't afford their own apartment or can't imagine ever owning their own home, we know we have a problem".

Ontario is also expanding rent control, which now applies only to units built before November 1991.

"While we support the government's interest in ensuring viable rental options for Ontarians, well intentioned yet dramatic changes to rental policies meant to improve options for renters will have unintended consequences, resulting in a stagnant rental industry, declining rental assets, and less choice for today's tenants". In Toronto, the average price of detached properties hit $1.56 million, an increase of 32.8 per cent from March 2016.

Expanding the province's existing rent control system to cover all tenants. Other measures to be implemented by the CMHC next month include the introduction of improved underwriting flexibilities and a revised premium schedule supporting increased affordable housing.

Federal and Ontario finance ministers say that while they are concerned about diminishing housing affordability in Toronto, they will not introduce measures for homebuyers that could impact house prices in the city by boosting demand.

More news: Browns zero in on No. 1 pick, trade for veteran QB unlikely

"What we're aiming to do is to bring in some initiatives that will help people in that whole continuum of housing right from rental through to purchasing a home without having unintended consequences", she said in Ottawa.

Real estate agent Sabrina Ataullah-Jan said that Canadian properties are undervalued and that is why the Toronto area has an influx of foreign investment.

Wynne acknowledged that the government will wait and see what impact the measures will have and wouldn't rule out taking further action, if necessary.

The Ontario government has announced what it calls a comprehensive housing package aimed at cooling a red-hot real estate market.

Like many others, Altbaum is calling for either a foreign buyers tax - like the one imposed in Vancouver in August - or a change to capital gains taxes to discourage investors from flipping properties.

- A five-year, $125-million program aimed at encouraging the construction of new rental apartment buildings by rebating a portion of development charges.

A standardized lease document for all tenants.

Ontario also plans to allow municipalities, led by Toronto, to slap their own tax on vacant properties.

Federation of Rental-housing Providers of Ontario (FRPO) president and chief executive officer Jim Murphy is disappointed the proposed rollback - which he said could be "very damaging" to the future supply of rental housing - was made without formal consultation with the industry directly responsible for the development and operation of rental housing.

- An effort to understand and tackle practices that may be contributing to tax avoidance and excessive speculation in the housing market.

Related News:

Most liked

Wanted man Isco seeks long-term Real Madrid stay
After the match Isco once again told the press that he's happy in Madrid and he wants to stay at the club. They beat Bayern Munich 2-1 in Munich in the first leg of their Champions League quarterfinal tie.

Fugitive Mexican ex-Gov. Javier Duarte detained in Guatemala
Javier Duarte had been staying at the four-star hotel under a false name for at least two days. A reward of 15 million pesos ($730,000) had been offered for his capture.

Borini grabs late equaliser to give Sunderland hope
West Ham have thrown away 22 points from leading positions in the Premier League this season, the highest in the division. "(Our struggles are) a little bit because of problems within the dressing room but that's for us to deal with it.

Christie defends killing tunnel project he says 'stunk'
Protestors gathered outside the meeting at Newark Penn Station to blame the governor for the recent rail issues. "That's done. Christie during the news conference. "I absolutely will continue to speak my mind on this, both publicly and privately".

Champions League: Real Madrid face Atletico Madrid in semi final
Zinedine Zidane's side will have home advantage in the first leg, as do surprise package Monaco on the other side of the draw. Which teams do you think will reach the Champions League final, and who do you think will win the competition?

Rajnath Singh tells all states to ensure safety of Kashmiris
Six Kashmiri students studying at Mewar University were beaten up by some locals in Chittorgarh district. The students were also upset with the university authorities for not being able to protect them.

Nunes Steps Down From Trump-Russia Investigation
Nunes then briefed President Trump without first disclosing his information to the committee's ranking member , California Rep. Nunes went on to say that this "has to do with FISA, and there are multiple FISA warrants that are out there".

Court Finds More Racial Gerrymandering in Texas Voting Maps
Rafael Anchia , head of the Texas House' Mexican American Legislative Caucus , the plaintiff in the lawsuit against the state. Rodriguez, a former Republican member of the Texas Supreme Court, was appointed to the federal bench by President George W.

Court Finds More Racial Gerrymandering in Texas Voting Maps
Rafael Anchia , head of the Texas House' Mexican American Legislative Caucus , the plaintiff in the lawsuit against the state. Rodriguez, a former Republican member of the Texas Supreme Court, was appointed to the federal bench by President George W.

Court again finds intentional voter discrimination in Texas
Smith, for one, seems certain the case is headed for yet another appeal, ending his dissent with the words "Stay tuned". By contrast, it found legislators protected anglo districts with slower population growth.

Spain rescues 125 migrants crossing sea at night
A day earlier, the Italian coastguard had carried out 19 rescue operations aided by NGOs, including the medical charity Doctors without Borders.

Five Swansea City players too good for the Championship
Asked if Swansea have the appetite to win their survival battle , Clement replied: "100 per cent". He has unbelievable talent and he is a fantastic leader - one of a dying breed of leaders.

What Does Bernie Sanders Think Of Jon Ossoff? His Remarks Are Puzzling
Price, now the president's Health and Human Services secretary, was re-elected with almost 62 percent of the vote in 2016. Roughly five hours after polling locations closed, major networks began projecting that Georgia's 6th District U.S.

Manchester United Defeat Sunderland to Keep Top-4 Hopes Alive
Cape Town - Jose Mourinho took time out from bashing defender Luke Shaw to praise his performance in the 3-0 defeat of Sunderland on Sunday.

It’s 2017 and Websites Have No Excuse But to Cater for Mobile Users
The site and business owners who haven’t adapted for mobile need to take note of the success of companies that have. This is either responsive or adaptive web design, but both cater to any size screen, including mobiles and desktops.