Tax non-resident foreign house buyers 15% in Toronto

The deep meaning of slapping 15% NRST in Toronto is totally different from what it was in Vancouver. Statistics tells in Toronto only 5% are non-resident buyers. Can this 5% make Toronto's residential market go crazy? Absolutely not.

As all know, the underlying causes are the low interest rate, the low currency value of CAD and the Supply Crisis . Low interest rate environment encourages speculators and investors to place their money in the property market and let it ride. Loonie losing attitude also encourages people to invest in 'bricks'. However, the most critical and fundamental reason is the limited supply and users are hunger for their home as well. (OREA reports only 1.3 month of inventory be available in the market as at the end of March, 2017.)

Hope the market can positively response to this 'mild' 15% NRST. Otherwise, the possibility of 2nd wave may be introduced.