OTTAWA (Reuters) – Canada is readying a new tax on foreign home buyers to help tamp down on speculative purchases from overseas, cited as a factor behind sharp rises in housing prices in some markets that have left many Canadians unable to afford homes.
The new tax was mentioned in a fiscal document published on Monday, though few details were given. The timing and scope of the measures would likely be outlined in the spring budget, expected in March or April, a senior government source said.
“Speculative demand from foreign, non-resident investors contributes to unaffordable housing prices for many Canadians,” the government said in its Fall Economic Statement.
“The government is committed to ensuring that foreign, non-resident owners, who simply use Canada as a place to passively store their wealth in housing, pay their fair share.”
Foreign speculators were blamed for driving up home prices in Vancouver and Toronto earlier