Wednesday, August 27, 2025

Ontario Raises Foreign Homebuyer Tax For The Second Time This Year

Ontario’s non-resident speculation tax on homes purchased by foreign nationals has been raised from 20% to 25% starting Tuesday.

Applied to foreign individuals, corporations, or taxable trustees who buy homes in Ontario, the increase aims to discourage foreign speculation as the province seeks to address its housing shortage

“Young families, newcomers and those all over the province dream of having their own home, a dream which continues to be out of reach for too many,” said Minister of Finance Peter Bethlenfalvy. “To help Ontario homebuyers, our government is increasing the non-resident speculation tax rate by another five percentage points to 25%, making it the highest in Canada, to further discourage foreign speculation in Ontario’s housing market.”

The move follows the increase from 15% in March, when the Progressive Conservative government also expanded the tax to include homes in the whole province, versus initially only covering the Greater Golden Horseshoe area in southern Ontario.

On Tuesday as well, Premier Doug Ford introduced new legislation that would allow building three units in each lot, as part of the government’s plans to build 1.5 million homes in the next 10 years.

The province’s non-resident speculation tax rate is now the highest in Canada. But some say that it will not have much impact on Ontario’s housing crisis, as foreign ownership only accounts for a very small portion of homes. 

Data from StatCan’s 2018 Canadian Housing Statistics Program show that non-resident ownership of housing was only 2.2%. A 2020 survey from CMHC found that number to be lower than 1% for condo apartments in major urban centers from 2016 to 2020.


Information for this briefing was found via Statistics Canada, CMHC, and the sources and companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Goliath Resources Hits 10.60 g/t Gold Over 22.82 Metres, Highest Grade Results In Third Distinct Rock Package At Surebet Discovery

Four Countries Control the Fertilizer That Feeds the World | Sage Potash

$10,000 Gold Is Just A Question of Time | Florian Grummes

Recommended

Nord Precious Metals Identifies 29 Veins At Castle East Following 3D Modeling

Emerita Resources Expands El Cura Drill Program By 10,000 Metres As Deposit Remains Open For Expansion

Related News

Canadian Housing Starts Drop 12.6% in December

Canada’s housing construction levels declined in the final month of the year, but continued to...

Monday, January 18, 2021, 02:18:00 PM

Ontario Awards SpaceX $100 Million for Rural Internet Access

Ontario has awarded a $100 million contract to Elon Musk’s SpaceX to provide satellite internet...

Friday, November 15, 2024, 02:19:00 PM

Freeland Rejects Toronto’s Bailout Request, Points At Ontario Instead

Deputy Prime Minister Chrystia Freeland has declined Toronto’s appeal for a bailout to address the...

Tuesday, July 25, 2023, 12:25:35 PM

Canadian Home Prices at 1988 Levels … When Measured in Gold

While Canadian home prices have become less affordable in dollar terms, they have actually returned...

Monday, September 16, 2024, 01:47:00 PM

No, The Ban On Canada’s Foreign Real Estate Buyers Seems Rather Practical

Despite the loosely assembled mechanics of the ban on foreign ownership of Canadian housing, it...

Tuesday, February 27, 2024, 11:15:00 AM