An introduction to the Ontario Fair Housing Plan
The Ontario Fair Housing Plan is a 16-point plan unveiled by the Government of Ontario on April 20, 2017. The purpose of the plan was to tackle the unusual housing situation of the province. The plan aims to increase the housing supply within the province, lower prices and rents, and even reduce speculation about the housing bubble in the province.
How will the Ontario Fair Housing Plan affect foreign buyers?
Effective from April 21st, 2017, a 15% foreign buyer’s tax will apply to all residential real estate which will be sold in the Greater Golden Horseshoe region. This imposition of foreign buyer’s tax on the sales price of residential properties is the first component of the Ontario Fair Housing Plan. The foreign buyer tax will apply to all types of residential real estate including condominiums, townhouses, semi-detached houses and even detached houses.
The idea of imposing a foreign buyer’s tax on residential real estate comes from the rules imposed by the government of British Columbia. The purpose of these rules was to decrease the prices in the Greater Vancouver Area.
The effect of the Ontario Fair Housing Plan on rent
Another initiative of the Ontario Fair Housing Plan affects rental controls within the province of Ontario. According to the rules of the Ontario Fair Housing Plan, provincial guidelines will determine how much the rent of a property can be increased in a year. These rules will apply to all private rental properties in the province. Effective from 21st April, 2017, another reason of the rental control initiative of the Ontario Fair Housing Plan is to ensure that the rent increase in the province does not increase the rate of inflation.
To learn more about the Ontario Fair Housing Plan, or to find out about real estate investment opportunities in Ontario, contact Nav Sidhu.