Ontario brings in foreign housing tax to cool Toronto market

That is what I view as my responsibility, not to look after the investment needs of people who chose real estate as their investment target.

A spokesman for federal Finance Minister Bill Morneau says Ottawa is concerned about diminishing affordability in the housing market, calling the matter a complex issue with lots to talk about.

"But we do believe that there is a need for interventions right now to calm what is going on, to put protections in place".

A rebate would be available for those who later become citizens or permanent residents, as a well as foreign nationals working in Ontario and worldwide students. The rent controls must come through approved legislation, but will take effect today, April 20.

Wein said his company builds condos and houses throughout the Toronto region and generally requires that buyers get permission from Great Gulf to reassign their contracts for new homes.

The government is also planning on extending rent control to all private rental units, including those built after 1991.

Under the amendment developed by Ballard, rent hikes on all newer units would be limited to the inflation rate, which was at 2 per cent in February.

The tax "would apply ‎to transfers of land that contain at least one and not more than six single family residences" and affect buyers who are not citizens or permanent residents as well as foreign corporations.

Governor Stephen Poloz said the roughly 30 per cent increase in Toronto prices had "divorced" itself from economic fundamentals, cautioning that any market rising at such a pace is vulnerable to a correction.

"But if Vancouver is any guide, we might see a short period in which domestic buyers will sit on the sidelines while assessing the impact of the tax".

"We don't allow a person to buy five or 10", he said.

"The non-resident speculation tax has nothing to do with new Canadians and people who want to make Ontario their home".

She added that the province will review the rules surrounding real estate agents to ensure buyers are getting a fair shake in bidding wars.

The Canadian Real Estate Association said Tuesday home sales over its Multiple Listings Service system increased by 1.1 per cent in March to top the previous monthly record set in April 2016.

We'll wait for the details but from the sounds of things, indications are that they're taking a sledge hammer to it.

The steps to cool Toronto's hosing markets comes after Canada's top federal and provincial officials agreed this week that moves were necessary to bring in Toronto's roaring housing sector under control. "But for those who have the money to invest and see the high growth potential in Toronto, which is repeatedly voted as the best city to live in, I don't think the 15 percent will be enough of a deterrent".

Sousa, for his part, said he is not anxious that capping rent increases will discourage developers from building new housing.

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