Ontario raises foreign homebuyer tax

Ontario has announced it is raising the non-resident speculation tax on homes purchased by foreign nationals, effective today.

It will be raised from 20 per cent to 25 per cent.

Ontario’s finance minister says the move makes the province’s tax rate the highest in Canada and seeks to discourage foreign speculation.

The progressive conservative government previously increased the non-resident speculation tax from 15 per cent to 20 in March.

It also expanded it to cover the whole province instead of just the Greater Golden Horseshoe area of southern Ontario.

The municipal affairs and housing minister says raising the tax is another step toward ending Ontario’s housing crisis.