The 15 percent levy will apply to non-Canadian citizens, non-permanent residents and non-Canadian corporations buying residential properties containing one to six units in the greater Toronto area, the provincial government said in a statement Thursday.
A highlight of the Ontario government's response is a 15% tax on foreign buying. "We've heard about fake bidding so we want to modernize the rules", said Sousa.
"As you know, there are a number of speculation activities within our market, by domestic and non-resident Canadians, so we're looking at what we should be able to do for the benefit of Ontario and our economy, " he said. This happens when a buyer who has purchased a pre-construction property decides to sell/assign her right to buy the property to another buyer for a fee.
Canada faces "a dearth of data on whose doing what", Trudeau said.
"Limitless rent increases are now going to be illegal and renters have the protection that rent generally won't increase more than around 2.5 per cent a year", he said.
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. As an example, the Globe and Mail reported that 9 students earning no income bought $57M worth of real estate in one luxury Vancouver neighborhood.
"We've got 80,000 people a year moving into the city".
Toronto's runaway real estate market could take a breather due to Ontario's new housing measures, but much like what transpired in Vancouver, the impact of the changes is expected to be short-lived, experts say.
The tax would not target immigrants and a rebate would be available to people who subsequently get citizenship or permanent resident status, as well as foreign nationals working in Ontario and global students. This will include: developing a standard lease with explanatory information available in multiple languages; tightening provisions for "landlord's own use" evictions; and ensuring that tenants are adequately compensated if asked to vacate under this rule.
The province will also work with municipalities and other partners to identify provincially owned surplus lands that could be used for affordable and rental housing development.
The 16 measures include the imposition of a 15% foreign speculators tax and closure of a loophole that allowed landlords to raise rent by any amount on units built after 1991.
It would not apply to transfers of other types of land including multi-residential rental apartment buildings, agricultural land or commercial/industrial land.
Providing municipalities with the flexibility to use property tax tools to help unlock development opportunities.
The province of Ontario, where the red-hot Toronto housing market is located, will unveil a suite of 10 different measures to control housing prices, according to a report from the Toronto Star.
The Toronto Real Estate Board said this month that March prices across the region were up 33 per cent from a year ago while condo research firm Urbanation Inc. said condominium rents rose 8.3 per cent in the first quarter from a year ago. Bank of Canada Governor Stephen Poloz said last week the price gains are "divorced" from the typical measures of demand, such as income growth and demographics, and said they are unsustainable.