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Ontario not targeting foreigners instead targets the rich and reward first time homebuyers

 


On Monday, Ontario Finance Minister, Charles Sousa announced that the Provincial government will double the Land Transfer Tax refund for eligible first-time homebuyers to $4,000. Which means, as of January 1, 2017, no first-time home buyer in the province of Ontario will have to pay Land Transfer Tax on the first $368,000 of their home. Read the full Government of Ontario Press Release here.

At the present, Ontario homebuyers are taxed 0.5% on the first $55,000, 1% on the next $55,000 to $250,000, 1.5% on the next $250,000 - $400,000, and 2% on anything above $400,000. With the changes proposed on November 14th, there will be an extra tax of 2.5% on anything above $2Million. Now these numbers reflect the rest of the province but not Toronto, as you know, due to our own Land Transfer Tax in addition to the Ontario Tax.

In an interview with the Financial Post, Phil Soper, President & CEO of Royal LePage Canada stated; “You look at even in an expensive city like (Toronto), $2 million is well above the average detached home and the additional half a point only applies to amounts above $2 million. You add another million (to a purchase over $2 million) and it only amounts to $5,000. This is a very different approach to what happened in British Columbia. It’s not aimed at one group.” This is a very true statement, as British Columbia looked for one specific group to target, namely foreign buyers, and slapped them with a 15% Tax. This does not improve affordability, and it does not encourage a healthy Real Estate Market. Ontario is trying to follow the federal mandate to make housing more affordable for the middle class; have they succeeded? I think it’s too early to tell, but it’s definitely a good step in the right direction.


About Royal LePage Vision

Founded in 2003, Royal LePage Vision, in Toronto, is a multiple award-winning brokerage with a strong contingent of high-performing agents. Our strength over the past 13 years is rooted in technology and how innovation translates to exceptional service.

From top to bottom our brokerage is built on making it easier for our Realtors to succeed in real estate while staying consistently connected to the office. With a strong emphasis on training, for both our support staff & Realtors, each one of our Realtors has the support and tools to be effective in their market.

If you would like to learn more about the difference VISION makes, please give us a call at 416-321-2228 or visit moveuptoroyallepage.com.


*video courtesy of The Canadian Press

Royal LePage Vision Realty, Brokerage
2210 Markham Rd., # 1
Toronto, ON M1B 5V6

Phone: (416) 321-2228
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Toronto Real Estate Board - IDX Last Updated: 12/13/2017 6:21:30 PM