The New Ontario Housing Law has raised many questions in real estate buyers and sellers. Here is a brief summary of this new proposal from the Government to make it easier to understand what it is:   What will happen to the high demand for housing?   Non-Resident Speculation Tax: 15% on properties purchased in the GTA by foreign persons. Refugees are exempt from paying this tax.   Protection of Tenants:  

1. Control over the increase in rental costs with a limit of 2.5% per year
2. Strengthening of the Law of Leases: if the landlord needs to make use of the space he is renting and the tenant must be evicted, the latter will be properly compensated.
3. If it is a new condominium and the works corresponding to the elevators have not been completed, the owner is prohibited to increase the rent.

  How will the housing supply increase?  

1. Establishing an agreement with the City of Toronto so that a minimum of 20% of the homes are available for rent and 5% for the purchase, both at affordable prices.
2. A tax on vacant housing will be set so that those who have unoccupied investment properties are forced to sell or put them to rent.
3. The housing tax on new buildings will be levied at the same time as the rest of the residential properties, so developers will build more homes for rent only.
4. Reimbursement of a fraction of the cost of development to the construction companies by the City to encourage the lifting of apartment buildings for rent in specific areas.
5. If there is a vacant lot previously approved for a construction, the Municipality would have the right to apply a higher tax so that the constructors accelerate the development.
6. A Housing Supply Team will be created: professionals from both parties, builders and municipalities, who work hand in hand in identifying and solving housing problems.

  Buyer Protection:  

1. Identify practices that may be contributing to tax evasion and excessive speculation in the housing market.
2. Renovation of the rules that agents must follow in the home purchase process with the goal of making Ontario a leader in real estate standards.
3. Establishment of a professional group that will meet with the Government to provide advice on the state of the market and the impact of this new Housing Plan.
4. Educate clients about their rights, especially if the same agent is representing several parties in the same transaction.
5. Work hand in hand with the Canadian Revenue Agency to ensure that all applicable taxes are levied on every real estate purchase or sale transaction.
6. Make lifts in Ontario buildings more reliable by setting deadlines for repair in consultation with the TSSA.
7. Have the builders do a demographic study to determine the appropriate size of residential units to build to ensure the development of optimal communities that are economically competitive.

  Actions to date:  

1. Duplication of the maximum Land Transfer Tax refund for first-time homebuyers eligible for $ 4,000. In other words, they do not pay this tax on the first $ 368,000 of the cost.
2. Land Transfer Tax increase of one or two single-family homes of more than $ 2 million. These proceeds are being used to finance first-time buyer reimbursement improvements.
3. Facilitate the purchase of surplus government land from construction companies.
4. Make affordable housing parts of new residential developments.
5. Amendment of the Law of Planning and Development Charges Act to support the second units, so owners can have rental units in their primary residence and earn extra income.
6. Freeze municipal property taxes for multi-residential apartment buildings in communities where they are already very high.

  There is no doubt that the real estate market in Ontario has experienced tremendous growth in recent years and prices are steadily rising. That is why the Government has decided to take action to try to control this situation.   If you still have doubts or want to know a little more about this new Plan, do not hesitate to contact me and I will gladly explain in detail.