ONTARIO RECONSIDERING FOREIGN BUYERS REAL ESTATE TAX
Mar 09, 2017
By Bob Komsic
Home hunters may soon get relief.
The provincial finance minister is rethinking whether to slap a foreign buyers’ tax as a way to cool the hot real estate market.
The average price of homes sold in the GTA last month shot up nearly 28% over last year with the average price of a detached place in the city over $1.5-million.
Finance Minister Charles Sousa says last year the province didn’t want to follow the lead of B.C., which imposed a 15% tax on foreign nationals purchasing homes in the Vancouver area.
Instead, Queen’s Park doubled the rebate on its land transfer tax for first-time buyers to $4,000 and raised the same tax on homes that go for over $2-million.
Sousa says his thinking last year was to let the market forces prevail but that not he’s concerned about people’s ability to enter the market and ”the degree of fast appreciation in the short term and what will that do over the long term.”
The finance minister points out he’s looking at a number of options and ”a foreign tax is just one.”