It’s no secret that Toronto’s housing market is on fire. Do an online search and you’ll find hundreds of articles and opinions on everything from why the market is hot, to when or how the ‘bubble’ will burst. Toronto’s housing market is experiencing unprecedented housing price increases and while many will profit handsomely, the current trend is creating a market that is unaffordable to many more (potential) homebuyers and renters. Housing is a basic need for all Ontarians. In an effort to alleviate the pressures Ontarians face trying to buy a home or afford their rent, the provincial government recently introduced the Fair Housing Plan.
Ontario’s Fair Housing Plan
The Plan consists of 16 comprehensive measures designed to:
- Bring stability to the current market
- Protect the investment of homeowners
- Enable more people to find an affordable place to live particularly in the GTA and Greater Golden Horseshoe (GGH).
Most notable of these measures is The Non-Resident Speculation Tax. In making the announcement, Premier Wynne was very clear that the tax “has nothing to do with new Canadians and people who want to make Ontario their home…with this tax, we’re targeting people whoaren’t looking for a place to raise a family. They’re looking only for a quick profit or a safe place to park their money.”
According to a press release from the Office of the Premier, this is a “15 per cent Non-Resident Speculation Tax (NRST) on non-Canadian citizens, non-permanent residents and non-Canadian corporations buying residential properties containing one to six units in the Greater Golden Horseshoe (GGH).”
There are also measures designed to address rent control, stimulate creation of more new purpose-built rental apartment buildings, stem tax avoidance and excessive speculation in the housing market, and to create a new Housing Supply Team to work with developers and municipalities.
You can learn more by visiting the following links:
Will these measures work?
The answer to this is that time will tell. For now, the market continues to offer interesting options for selling, downsizing and investing. If you’re interested in exploring what potential the market has for you, talk to a Realtor ® .
The Mitra Moves You Team takes pride in serving Thornhill and other communities. We are committed to transforming dreams into sustainable wealth through strategic home ownership and real estate investments. And we’re just a phone call away.