A new proposal announced mid-November by Ontario Minister of Finance, Charles Sousa, and Minister of Housing, Chris Ballard, promises to take action to address housing affordability across the province.
The proposal includes a plan to freeze the municipal property taxes on apartment buildings while undertaking a review of how the high property tax burden for these buildings affects housing affordability in the rental market.
It also plans to modernize the Land Transfer Tax to reflect the current real estate market, including increasing rates on one or two single-family residences over $2 million. Revenue generated from proposed increased rates would be used to fund the enhancements to the First-time Homebuyers Refund.
“We know that rising home values are a good thing for the provincial economy, but also a concern for a growing number of Ontarians,” said Charles Sousa, Minister of Finance. “The government is committed to supporting an affordable and stable housing market while balancing the concerns of homeowners, first-time homebuyers and renters. Ontario is taking action to address housing affordability and to help people in their everyday lives.”
“We’re working to protect renters across the province, to make housing more affordable for all Ontarians and to ensure that Ontario continues to be the best place to live and raise a family,” added Chris Ballard, Minister of Housing and Minister Responsible for the Poverty Reduction Strategy.
Currently, the average municipal property tax burden on apartment buildings is more than double that for other residential properties, such as condominiums.