How This New Mortgage Rule Could Affect You
In an endeavor to cool down the real estate market in Canadian hotspots, the Government of Ontario has increased the Non-Resident Speculation Tax (NRST). It’s raised from 15% to 20% for foreign nationals, foreign corporations, and taxable trustees.
The new rule is effective from March 30, 2022, in Ontario and British Columbia, which means foreign buyers will find it more challenging to buy property in these provinces. However, there are a few exemptions for foreign individuals who are not permanent residents of Canada.
*A Foreign national:
• who purchases property with a Canadian spouse.
• nominated under the Ontario Immigrant Nominee Program and certifies that they will apply to become a Canadian permanent resident.
• who is a protected refugee.
*Foreign nationals must meet one of the above criteria and designate the property as their primary residence to qualify for the exemption.
On a final note, the purpose of the rule change is expected to decrease the demand for new homes in Ontario and reduce upward pressure on home prices. It will also help to close tax loopholes, fight tax avoidance and expand the tax base.
Therefore, if you need help with a rebate or have any concerns about whether the NRST applies to you, don’t hesitate to contact Marwah Law today. With many years of experience, we strive to maintain the highest standards of quality and excellence.
Our expert team specializes in consulting clients on legal matters related to business, real estate, and immigration. In addition, our professionalism and commitment have helped us build a reputation as a reliable boutique law firm.
We serve clients across Sandy Hill, the Glebe, Alta Vista, New Edinburgh, Kanata, Dow’s Lake, Orléans, Old Ottawa South, Hintonburg, Tunney’s Pasture, and Billings Bridge, to name just a few places.