Ontario’s Fair Housing Plan introduced 16 measures aimed to help cool the hot real estate market. These new measures are expected to bring stability to buyers and renters in the real estate market as well as implement efforts to gather more data to help make more informed decisions in the future.
- Effective April 21, 2017, the NRST would charge 15% on the price of homes within the Greater Golden Horseshoe (GGH) area. The GGH includes the following geographic areas: Brant, Dufferin, Durham, Haldimand, Halton, Kawartha Lakes, Niagara, Northumberland, Peel, Peterborough, Simcoe, Toronto, Waterloo, Wellington and York. This tax applies to buyers who are not Canadian citizens or Permanent Residents.
- Exemptions: refugees and foreign nationals who receives confirmation under the Ontario Immigrant Nominee Program
- Rebates: available to foreign nationals who become a Canadian citizen or Permanent Resident within 4 years of the date of purchase, foreign students who have been enrolled in full-time studies for at least 2 years, foreign nationals who have legally worked full-time in Ontario for a continuous period of 1 year since the date of purchase/acquisition
- Rent control will be applicable to all private rental units built after 1991. The yearly rental increase will be capped at a max of 2.5%.
- As part of the Ontario government’s plan to collect more data, they’ll be using that data to crack down on buyers who invest in new builds and then sell them on assignment before it closes – they’ve coined these buyers as “paper flippers”. They’ll be working closely with the CRA to ensure all taxes (e.g. land transfer taxes) are paid.