Ontario has passed new real estate legislation in a bid to tackle housing affordability, the Ontario Fair Housing Plan.
The measures include a 15 per cent non-resident speculation tax which targets foreign buyers and investors in the Greater Golden Horseshoe Area; an area which includes the GTA and Durham Region as well as The City of Kawartha Lakes, the County of Peterborough and Northumberland County.
The new tax applies to all residential property sales as of April 21, 2017. A foreign purchaser who becomes a permanent resident of Canada within four years of the purchase date and works for 12 consecutive months in Ontario following the purchase could be eligible for a rebate on the tax.
Ontario’s finance minister, Charles Sousa, claims the move is an effort to make housing affordable for all Ontarians.
In a related move, the Canadian Centre for Economic Analysis (CANCEA) is pushing for extensive new home construction as an added measure to address housing affordability.
The group claims that Toronto alone requires $150 billion in new home construction in the next 10 years to properly address affordability.
Using their own proprietary index, called the Shelter Consumption Affordability Ratio (SCAR), which measures the after-tax income that households devote to home-ownership related expenses after paying other necessities such as food, health and child care, CANCEA claims that currently, one in four Ontarians are facing housing affordability issues.
To learn more about Ontario’s new Fair Housing Plan, click HERE.
If you have questions about ways to become a homeowner in Durham Region, call Rebecca McGarvey at 905-260-4305. Rebecca has extensive experience as a Realtor and a real estate investor and is always happy to share her knowledge and help others realize their real estate goals!