The federal government is happy with Ontario’s move to tax foreign home buyers in and around Toronto, but says it won’t be replicated on a national level because it’s unnecessary in majority of this country.
Finance Minister Bill Morneau said his government was consulted in advance of the move by the Ontario government, which announced a 15% tax on foreign purchases in the hope of cooling a scorching Toronto’s real estate.
Few announcements made by the governments are foreign-purchase tax, expands rent control, allows municipalities to tax vacant properties and creates new layers of scrutiny for speculative purchases.
“There was nothing that surprised us in their announcement. We had discussed in broad strokes the measures they were moving forward with,” Morneau said Friday during a visit to Washington.
“The measures around trying to reduce speculation in the market, we think, are positive. We do believe there’s an important issue around psychology in the market that needs to be addressed — and Ontario is making progress.”
But Morneau is adamant: there will be no similar plan for country wide.
That’s because the conditions that drove Toronto home prices up more 30% in a year to an average value above one million simply don’t exist in most places.
“We have very different markets in different parts of the country. So the measures being taken are dealing with specific market conditions in places like Toronto and Vancouver,” Morneau said.
Please review the market stats are attached to this article.