With the recent announcement about the affordable and equitable housing plan by the BC government, there has been a lot of speculation on the upcoming actions of the Ontario government on the same topic. It is no secret that real estate in Ontario has become largely unaffordable, so economists are predicting that the Ontario government may raise the foreign buyers tax 5% (from 15% up to 20%). This will help to prevent foreign buyers simply moving from owning property in Vancouver to owning property in Toronto.
With the increase in foreign buyers tax, the Ontario government will be making some serious revenue, which they will hopefully put towards affordable housing. Although it seems unlikely that new taxes will deter foreign buyers, it will give locals a slightly better chance at securing their dream home.
So what does this mean for mortgages? If the housing market becomes more regulated and affordable, mortgages can be too! With this anticipated change, now could be the right time to buy a new property and obtain a new mortgage. The government is giving Ontario home buyers a head start in front of foreign buyers, so even if you are a first time buyer you can benefit from these upcoming foreign tax increases.
If you are excited about these new legislation changes and want to find your next home soon, contact me today. Whether you need help getting started on your mortgage process, have questions about mortgages, or need to find a lender, I’m here for you!