2.12.20 - “A re-elected PC government will stand up for Ontario homebuyers by cracking down and punishing land and housing permit speculators”
The Ontario government raised the foreign homebuyers tax to 25%, effective October 25, 2022. This step was taken to “further discourage foreign speculation” in the housing market, according to Ontario Minister of Finance Peter Bethlenfalvy. However, critics say that this will not make a significant dent in housing affordability in Ontario, given the low rate of foreign ownership and already-high rate of tax prior to this announcement, and that further steps need to be taken to curb land and housing speculation. As this is a step toward the pledge of punishing land and housing permit speculation, this promise is considered in progress.
“The Ontario government announced Monday it is increasing the foreign homebuyers tax to 25 per cent effective Oct. 25. The tax was previously raised to 20 per cent from 15 per cent in March 2022. The purpose of the tax is to give young families, newcomers and Ontarians, who dream of having a home, the ability to do so, said Ontario minister of finance Peter Bethlenfalvy, in a statement. […] The foreign homebuyer tax was projected to bring $175 million into provincial coffers this fiscal year, said Phil Soper, CEO and president of Royal LePage. ‘[Its] impact on home prices or supply is very minimal,’ he said.”
“To prioritize Ontario families and homebuyers, we are increasing the Non-Resident Speculation Tax rate from 15 to 20% and expanding the tax to apply provincewide effective March 30, 2022. […] We will also consult on potential measures to address concerns related to land speculation. For example, we will be exploring ways to discourage construction slowdowns that may be artificially driving up prices of new homes for Ontario families through land speculation.”