A national group of mortgage professionals recently slammed the various proposals calling for a foreign buyers’ tax in the GTA’s overheated housing sector.
“Imposing a foreign buyers’ tax does nothing to solve a lack of supply and could create adverse effects on the national, provincial and regional economies,” Mortgage Professionals Canada said, as quoted by BuzzBuzzNews.
“It is un-Canadian to blame foreigners for affordability concerns caused by lack of supply in the market.”
The organization is the latest in a growing chorus of voices that includes developers, real estate agents, and current Ontario Real Estate Association president Tim Hudak—all in staunch opposition against the implementation of such a levy.
More importantly, an additional tax on residential property purchases in the GTA would make it difficult for the Ontario government to balance its 2017-18 budget, as the levy might end up restricting sales activity. The province’s land transfer tax in 2016 added $514 million to its coffers.
MPC pointed at the relatively muted effect of British Columbia’s foreign home buyers’ tax, which was meant to cool down Vancouver. The province imposed a 15 per cent tax on non-resident buyers of homes in mid-2016.
“A foreign buyers’ tax has not improved affordability and has instead simply reduced housing activity,” MPC said.
Latest numbers from the Real Estate Board of Greater Vancouver bore out this claim: Last month, only 3,666 homes were listed for sale in Metro Vancouver, representing the lowest February supply levels since 2003.
Broker: Housing cooling measures likely coming
Red-hot Toronto a source not just of profits but also of dismay for agents
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate