Ontario
Ontario’s Fair Housing Plan is an attempt to promote the affordability of homes, supply, protection for buyers and renters, as well as stability of the real estate market.
If the legislation passes, a Non-Resident Speculation Tax (NRST) of 15% will apply onto the price of a home in the Greater Golden Horseshoe (GGH) purchased by an individual who is not a Canadian citizen, permanent resident, nor corporation. The NRST helps address the unsustainable demand via promoting the availability and affordability of housing, while welcoming new residents. The proposed tax will apply to the transfer of land that contain one to a maximum of six single family residences, including the detached, semi-detached, condominium and townhouse. The NRST will not apply to the transfer of other types of land, including the multi-residential rental agricultural land, apartment building, or commercial/industrial land. The NRST will be effective as of April 21, 2017, upon the enactment of the amending legislation.
Rent control is also expanded to all private rental units in Ontario, including those built after 1991. This will ensure that increases in rental costs can only increase at the rate posted in the annual provincial rent increase guideline. In the past decade, the annual rent increase guideline has averaged 2%. The increase is capped at a maximum of 2.5%. Under these changes, a landlord will still be able to apply vacancy decontrol and seek above guideline increases where permitted. If passed, the legislation will enact this change, effective April 20.