In a press release issued Tuesday afternoon, the province confirmed that it would increase the non-resident speculation tax from 15 to 20 percent from tomorrow. The government said the tax would be extended to the entire province. Previously it only applied to real estate purchased in the Greater Golden Horseshoe area of southern Ontario. “Young families, the elderly and workers are desperately looking for housing that meets their needs. “But the lack of supply and rising costs have made the dream of owning a home inaccessible to too many families in the countryside,” Finance Minister Peter Bethlenfalvy said in a statement. “That is why our government is adopting the most comprehensive non-resident speculation tax in the country. “Our government is working to increase supply and help keep costs low for Ontario families and home buyers, not for foreign speculators who want to make a quick profit.” The Ontario tax on non-resident home buyers first came into force in 2017 under the leadership of former Prime Minister Kathleen Wynne. The tax did appear to be slowing home growth at first, but in recent years, home values in the greater Toronto area have risen much higher, amid what industry observers have described as a supply crisis. In February, the average price of a home in the greater Toronto area exceeded $ 1.3 million, up 28 percent from the previous year. In a statement, the Ontario government said that in addition to the tax increase, it was also abolishing discounts previously available to international students and foreign nationals working in Ontario. The government says it will continue to provide foreigners studying and working in Ontario with the opportunity to receive a discount if they become permanent residents of Canada.
