Also in last week’s budget, the provincial government introduced a number of measures they hope will cool down Toronto’s housing market. One of these measures is a 15% Non-Resident Speculation Tax (NRST) on non-Canadian citizens, non-permanent residents and non-Canadian corporations buying residential properties containing one to six units in the Greater Golden Horseshoe (GGH). Other measures include:
- A program to leverage the value of surplus provincial land assets across the province to develop a mix of market-price housing and affordable housing.
- Legislation that would allow Toronto to introduce a vacant homes property tax in an effort to encourage property owners to sell unoccupied units or rent them out
- A review of the rules real estate agents are required to follow to ensure that consumers are fairly represented in real estate transactions.
- Education for consumers on their rights, particularly on the issue of one real estate professional representing more than one party in a real estate transactions
- A partnership with the Canada Revenue Agency to explore more comprehensive reporting requirements so that correct federal and provincial taxes, including income and sales taxes, are paid on purchases and sales of real estate in Ontario.
For more information, please see this background document from the Ministry of Finance.