As of March 30^th, Ontario has increased tax for non-resident homebuyers from 15 to 20 per cent. The Non-Resident Speculation Tax (NRST) is for foreign nationals, foreign corporations, and taxable trustees looking to buy in Ontario. Previously only applicable to heavily populated areas in the Greater Golden Horseshoe Region (Southern Ontario), the 20 per cent tax will now extend to the entire province. 

With the increase in the housing market the past couple of years, the NRST has been put in place to deter international buyers from purchasing in Ontario and further driving up costs. Being called the most comprehensive non-resident speculation tax in Canada, the province-wide implementation of the NRST is part of the Ontario governments commitment to prioritizing affordable housing to Ontario homebuyers. 

The government is taking steps towards homeownership for Ontario families, “Young families, seniors and workers are desperate for housing that meets their needs. But a lack of supply and rising costs have put the dream of homeowners out of reach for too many families in the province,” said Minister of Finance, Peter Bethlenfalvy. Bethlenfalvy also shared in a written statement that “our government is working to increase supply and help keep costs low for Ontario families and homebuyers, not foreign speculators looking to turn a quick profit.” 

With this, the province also announced that they will be closing “loopholes” by offering rebates to people and newcomers who may be impacted by this new tax. The province shared they will be focusing on “relief eligibility” which will be granted only to those who plan to lay down roots and commit to Ontario long-term. Various exemptions and rebates will be an option for new permanent residents of Canada. 

Working to address the province-wide concerns on housing, Ontario will also be working with various municipalities that are looking to establish a Vacant Home Tax. The city of Toronto has introduced this Vacant House Tax, and many cities are looking to follow suit. Along with the Vacant House Tax, Ontario is looking into other factors driving the housing market and will also be exploring options on ways to prevent construction slowdowns. The government hopes this will stop disrupting land speculation and driving up home prices in Ontario.  

The province shares that they plan to create a working group comprised of municipal representatives. This working group will share best practices and other possible solutions for attainable homeownership for Ontario families.