Real Estate

Ontario Hikes Foreign Buyer tax to 20%

  • Last Updated:
  • Apr 4th, 2022 12:26 pm
96 replies
Member
Sep 14, 2009
291 posts
574 upvotes
First, the speculative tax only applies to non-residents for citizenship purpose. Every non-resident client I know, are citizens but non-resident for tax purposes only.

Second, everyone of those aforementioned “non-resident” buyers purchase through their mom/dad/son/daughter/sister/brother/cousins locally, and the list goes on…

I don’t know a single person paying this tax right now.

Good move though, definitely sounds like he is doing something right without really doing anything much.
Deal Addict
Sep 3, 2020
2720 posts
1994 upvotes
htiek wrote: First, the speculative tax only applies to non-residents for citizenship purpose. Every non-resident client I know, are citizens but non-resident for tax purposes only.

Second, everyone of those aforementioned “non-resident” buyers purchase through their mom/dad/son/daughter/sister/brother/cousins locally, and the list goes on…

I don’t know a single person paying this tax right now.

Good move though, definitely sounds like he is doing something right without really doing anything much.
Very smart then - politically makes him look good to angry Canadians but in practice, doesn't touch the milk.
Deal Addict
Jan 15, 2010
1629 posts
2026 upvotes
Toronto
In its release, the Ontario government said that in addition to hiking the tax it is also eliminating rebates that were previously made available to international students and foreign nationals working in Ontario.

This could be huge if true.
Sr. Member
Jan 16, 2017
575 posts
339 upvotes
In Ontario, the highest foreign homeownership rate was in the city of Toronto, where non-residents owned 3.8 per cent of all homes and 7 per cent of condos, according to CHSP.

omg toronto condos 7%
Deal Guru
User avatar
Oct 16, 2008
11338 posts
5527 upvotes
Vaughan
htiek wrote: First, the speculative tax only applies to non-residents for citizenship purpose. Every non-resident client I know, are citizens but non-resident for tax purposes only.

Second, everyone of those aforementioned “non-resident” buyers purchase through their mom/dad/son/daughter/sister/brother/cousins locally, and the list goes on…

I don’t know a single person paying this tax right now.

Good move though, definitely sounds like he is doing something right without really doing anything much.
Too little, too late...

Very sneaky, those non-resident investors.
...
Member
Aug 30, 2021
365 posts
799 upvotes
This is complete BS. Non-residents is not the issue, the issue is money funnelled in through relatives, cousins, parents, brothers etc. who come in as students or legal short-term or long term residents.

Stop that and you will see a real change. Make it illegal for international students who come to study in Canada or scrutinize the source of funds of new immigrants who are trying to buy a property and you will see actual change.
Deal Addict
Oct 27, 2012
3063 posts
4997 upvotes
Toronto
Throwing a cup of water at a five alarm fire.
Sr. Member
May 29, 2020
902 posts
1709 upvotes
Vancouver
reesefitzmaurice wrote: watch in a few months prices drop back to 2021
If that happens it’s safe to assume it wasn’t because the tax went from 15 to 20%
Deal Addict
Sep 3, 2020
2720 posts
1994 upvotes
Meanwhile in BC, NDP is too scared to touch this shit show. I feel sorry for younger folks, it's just not right.
Deal Addict
Jun 18, 2020
4224 posts
5534 upvotes
Sooooooo, wasn't this already in the GTA and surroundings?

I realize it's up 5% for previously affected areas, but now, a foreign buyer who was looking at London or Kingston is now saying "It's gonna cost me 20%? OK I guess I'll just look in the GTA".

905 about to get a boost. Moon.
Deal Addict
Jan 15, 2010
1629 posts
2026 upvotes
Toronto
legendcanuck wrote: This is complete BS. Non-residents is not the issue, the issue is money funnelled in through relatives, cousins, parents, brothers etc. who come in as students or legal short-term or long term residents.

Stop that and you will see a real change. Make it illegal for international students who come to study in Canada or scrutinize the source of funds of new immigrants who are trying to buy a property and you will see actual change.
In its release, the Ontario government said that in addition to hiking the tax it is also eliminating rebates that were previously made available to international students and foreign nationals working in Ontario.
Deal Expert
Feb 22, 2011
16504 posts
21843 upvotes
Toronto
Just useless measure to campaign on.

The first 15% did legit nothing.
Member
Jan 31, 2014
300 posts
575 upvotes
This is like sending the fire truck after the house has burnt down to ashes.

I know this will never happen, but to bring prices down, the government needs to:

1. Enact publicly accessible beneficial ownership registry to eliminate money laundering in real estate
2. Introduce a short term capital gains tax like many other countries - if a 2nd property is sold within 5 years, capital gains tax rate = 50%
3.Double property tax rates for 2nd homes.
4.Ban use of HELOCs and other types of credit as a downpayment.

These 4 simple changes will probably end the speculative fever in real estate and make homes what they should be - places to live, not things to gamble on.

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