The Ontario government will be prioritizing families and homeowners by increasing the non-resident speculation tax rate from 20% to 25%. .“Today’s announcement is another step in our government’s plan to make housing more attainable for all Ontarians,” said Ontario Municipal Affairs and Housing Minister Steve Clark in a Tuesday press release. .“We are working to end Ontario’s housing supply crisis by building 1.5 million new homes over the next 10 years and by ensuring Ontarians are able to access our existing housing supply.” .The release said the increase will strengthen efforts to deter non-resident investors from increasing prices in Ontario’s housing market and help make home ownership more attainable. It said for many years, there have been concerns foreign real estate speculation is a major factor driving up housing prices. .The release went on to say the increase builds on previous actions the Ontario government took in March to make the foreigner buyers tax the most expansive in Canada. These actions include: .Increasing the rate to 20% from 15%;Expanding the tax to apply province-wide, as it was restricted to homes purchased in the Greater Golden Horseshoe Region; andEliminating loopholes by focusing relief eligibility to newcomers who commit to laying down roots in the province for the long term. .“Young families, newcomers and those all over the province dream of having their own home, a dream which continues to be out of reach for too many,” said Ontario Finance Minister Peter Bethlenfalvy. .“To help Ontario homebuyers, our government is increasing the Non-Resident Speculation Tax rate by another five percentage points to 25%, making it the highest in Canada, to further discourage foreign speculation in Ontario’s housing market.”.These steps, built on recommendations from the Housing Affordability Task Force and the Provincial-Municipal Housing Summit, will deliver short-term solutions and long-term commitments to provide more affordable housing options. .“These measures are a clear indication of our commitment to do precisely that,” said Clark. .The Canadian government mandated foreigners having to pay to play to enter the real estate market in 2021. .READ MORE: Foreigners to face 1% tax on housing not lived in.Offshore speculators face a first-time federal equity tax of $10,000 to $12,000 per year in Canada’s priciest housing markets..The Department of Finance said the tax would take effect in January.
