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. # SANDI HALPERN # SOLD # LEASED # REAL ESTATE MARKET # FOREIGN BUYER TAX