The provincial government calls on the Liberal federal administration to fulfill its campaign pledge
The Ontario government will likely hike its tax on non-resident home buyers if the federal government doesn’t take decisive action against the undue influence of foreign home buyers, according to BNN Bloomberg.
At present, the province’s foreign home buyer tax is at 15%. Among the Liberal federal administration’s campaign promises was a pledge to crack down on foreign homeownership.
“Ontario is prepared to raise the Non-Resident Speculation Tax (NRST) to 20% and expand its catchment area beyond the Greater Golden Horseshoe,” an unnamed senior Ontario government source told BNN Bloomberg. “By expanding the catchment area to include the entire province and raising the tax, we will discourage foreign speculation and make sure our limited housing supply is going to those who need it the most.”
The source said that the provincial government is also contemplating stricter exemptions from the tax, such as those applicable to foreign students and international workers.
Read more: Kitchener city councilors vote in favour of vacant home tax proposal
The statements came in the wake of fresh data from the Toronto Regional Real Estate Board, which showed that the average selling price across all residential asset classes surged by 21.7% annually to reach a new record high of $1.163 million.
“A key difference this year compared to last is how the condo segment continues to tighten and experience an acceleration in price growth, particularly in suburban areas. This speaks to the broadening of economic recovery, with first-time buyers moving back into the market in a big way this year,” said Jason Mercer, chief market analyst at TRREB. “The condo and townhouse segments, with lower price points on average, will remain popular as population growth picks up over the next two years.”
