It has become harder for foreigners to buy a home in Ontario
The property purchase tax has become the highest in Canada.
In three Ontario cities — Hamilton, Toronto and Ottawa — housing prices have skyrocketed in recent years. First, the province improved conditions for developers, so that investors would invest money and more apartments would come on the market, and for owners of apartments in new buildings, so that they would be profitable to rent out. In the end, the housing stock was being bought up by landlords, and the prices of apartments and rents were beyond the means of the average Canadian.
The provincial government has decided to take action. Until March 30, 2022 the property purchase tax for non-residents was 15% of the total value of the house. This rule applied to detached homes owned entirely by one owner, as well as townhouses and condominiums of no more than six apartments. In addition, the home had to be in the Great Golden Horseshoe (GGH) area. This is the shores of Lake Ontario, home to the Greater Toronto metropolitan area and home to about a quarter of Canada's population.
As of March 30, 2022, the property purchase tax rate has increased to 20%. The tax is now levied on homes anywhere in Ontario in a house with no more than six apartments.
But there are exceptions for those immigrants who will remain in Canada for permanent residence, they do not have to pay such a big tax. To buy a home for a non-resident without paying 20% tax, you must meet the following conditions:
- be a nominee of the provincial immigration program of Ontario;
- apply for, or commit to applying for, residency before your nominee certificate expires;
- all co-owners must be permanent residents of Canada or nominees for permanent residency;
- all co-owners must confirm that they plan to live in the purchased house.
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