Land Transfer Tax (LTT) Additional Information Collection

On April 24, 2017, the Province began collecting additional information from persons who purchase or acquire at least one and not more than six single family residences, or agricultural land, through the Prescribed Information for the Purposes of Section 5.0.1 Form (Form). To assist taxpayers, the Ministry of Finance provided a transition period from April 24 to May 5, 2017, where any deficiencies relating to the Form would not incur penalties. Effective May 6, 2017 the completion of the Form became mandatory.

This report is based on the additional information data (referenced above) for properties registered in the Province. The first table is an addition to previously released information for registered properties reported to the Ministry between April 24, 2017 and May 26, 2017, that are located outside of the Greater Golden Horseshoe Region (GGH). The remaining tables in the report are for properties reported to the Ministry between May 27, 2017 and August 18, 2017, and include a breakdown based on transactions in the GGH, outside of the GGH, and Ontario as a whole.

Contents

Purchases by Foreign Entities – Non-GGH Regions

April 24, 2017 – May 26, 2017

Approximately 1.5 per cent of the 8,102 transactions outside of the GGH involved at least one foreign entity. Overall, out of the 26,384 transactions in Ontario, approximately 3.7 per cent involved at least one foreign entity.  Previously, a similar statistic for the GGH Regions was released in July, it was 4.7 per cent.

In the table below and the subsequent tables in the report, LRO boundaries generally do not coincide with municipal boundaries (see endnote #1 and Appendix A).

Land Registry Offices (LRO)1
(LRO boundaries generally do not coincide with municipal boundaries)
Total Transactions
(A)
Foreign Transactions
(B)
Foreign Transactions (%)
(C = B / A)
Distribution of Foreign Transactions (%)
Non-GGH Total 8,102 122 1.5 12.5
Bruce 247 1 0.4 0.1
Grey 241 2 0.8 0.2
Huron 130 0 0.0 0.0
Muskoka 232 1 0.4 0.1
Ottawa 1,457 30 2.1 3.1
Oxford 250 2 0.8 0.2
Other Non-GGH Regions2 5,545 86 1.6 8.8
Ontario Total 26,384 979 3.7 100
Numbers may not add due to rounding.

Purchases by Foreign Entities – GGH and Non-GGH Regions

May 27, 2017 – August 18, 2017

Approximately 3.2 per cent of the 66,434 transactions in the GGH involved at least one foreign entity. Out of the 35,264 transactions outside of the GGH, approximately 1.6 per cent involved at least one foreign entity. Overall, out of the 101,698 transactions in Ontario, approximately 2.6 per cent involved at least one foreign entity.

Land Registry Offices (LRO)1
(LRO boundaries generally do not coincide with municipal boundaries)
Total Transactions
(A)
Foreign Transactions
(B)
Foreign Transactions (%)
(C = B / A)
Distribution of Foreign Transactions (%)
GGH Total 66,434 2,131 3.2 79.1
Durham 4,982 86 1.7 3.2
Halton 4,704 135 2.9 5.0
Niagara South & North 3,937 90 2.3 3.3
Peel 8,732 176 2.0 6.5
Simcoe 5,486 60 1.1 2.2
Toronto 15,315 857 5.6 31.8
Waterloo 4,213 73 1.7 2.7
Wellington 1,802 22 1.2 0.8
Wentworth 3,785 50 1.3 1.9
York 8,093 556 6.9 20.6
Other GGH Regions3 5,385 26 0.5 1.0
Non-GGH Total 35,264 562 1.6 20.9
Bruce 759 7 0.9 0.3
Grey 1,013 3 0.3 0.1
Huron 469 2 0.4 0.1
Muskoka 952 13 1.4 0.5
Ottawa 7,268 161 2.2 6.0
Oxford 1,060 4 0.4 0.1
Other Non-GGH Regions2 23,743 372 1.6 13.8
Ontario Total 101,698 2,693 2.6 100
Numbers may not add due to rounding.

Property Purchased with the Intention to Lease (Rent) (%)

May 27, 2017 – August 18, 2017

In Ontario, of the transactions involving at least one foreign entity, approximately 21 per cent included a purchaser that stated that their intention was to lease the property, compared to approximately 16 per cent of Canadian transactions with similar criteria. In the GGH, a higher proportion of purchasers, both domestic and foreign, indicated that they intend to lease the property, compared to outside of the GGH.

Land Registry Offices (LRO)1
(LRO boundaries generally do not coincide with municipal boundaries)
Canadian Transactions Foreign Transactions
GGH Total 16.6 21.6
Durham 13.6 30.6
Halton 14.2 17.9
Niagara South & North 19.3 16.9
Peel 14.3 17.6
Simcoe 15.1 35.1
Toronto 20.1 23.8
Waterloo 16.9 16.7
Wellington 18.1 31.8
Wentworth 19.8 10.0
York 15.5 20.0
Other GGH Regions3 14.1 12.0
Non-GGH Total 14.8 18.4
Bruce 13.6 0.0
Grey 13.5 50.0
Huron 12.2 100.0
Muskoka 9.3 8.3
Ottawa 16.0 15.5
Oxford 14.7 0.0
Other Non-GGH Regions2 14.8 20.2
Ontario Total 16.0 20.9
Numbers may not add due to rounding.

Property Purchased with the Intention to Occupy as a Principal Residence (%)

May 27, 2017 – August 18, 2017

Of the total transactions in the GGH involving at least one foreign national, approximately 80 per cent included a purchaser that stated that their intention was to occupy the property as a principal residence for themselves or a family member.

Land Registry Offices (LRO)1
(LRO boundaries generally do not coincide with municipal boundaries)
Canadian Transactions Foreign Transactions
GGH Total 84.0 79.9
Durham 88.4 63.5
Halton 87.1 85.1
Niagara South & North 80.0 80.9
Peel 89.1 84.1
Simcoe 81.2 63.2
Toronto 81.4 79.0
Waterloo 84.3 81.9
Wellington 85.6 77.3
Wentworth 80.9 80.0
York 85.7 83.5
Other GGH Regions3 81.3 64.0
Non-GGH Total 81.1 65.0
Bruce 69.5 42.9
Grey 74.3 0.0
Huron 77.4 0.0
Muskoka 59.2 8.3
Ottawa 86.5 87.6
Oxford 85.3 100.0
Other Non-GGH Regions2 80.9 57.5
Ontario Total 83.0 76.8
Numbers may not add due to rounding.

Type of Dwelling (%)

May 27, 2017 – August 18, 2017

Of the total transactions in the GGH involving at least one foreign entity, approximately 50 per cent were detached houses, 12 per cent were semi-detached houses and townhouses, and 37 per cent were condominiums. Outside of the GGH, foreign transactions involved approximately 21 per cent of ‘Other’ types of dwelling, which can include cottages and mobile homes.

Land Registry Offices (LRO)1
(LRO boundaries generally do not coincide with municipal boundaries)
Canadian Transactions
Detached
Canadian Transactions
Semi-Detached & Townhouses
Canadian Transactions
Condominiums
Canadian Transactions
Other
GGH Total 58.9 15.7 22.2 3.2
Durham 74.0 15.7 7.9 2.4
Halton 57.2 22.6 19.0 1.2
Niagara South & North 76.8 12.6 5.5 5.0
Peel 53.1 26.4 19.7 0.8
Simcoe 75.9 9.3 7.7 7.2
Toronto 31.3 12.3 54.2 2.2
Waterloo 69.6 16.3 11.3 2.8
Wellington 64.5 14.4 17.4 3.7
Wentworth 69.8 17.4 9.8 3.0
York 62.6 16.2 19.8 1.4
Other GGH Regions3 78.0 8.1 4.1 9.7
Non-GGH Total 71.4 10.2 8.8 9.6
Bruce 73.3 3.3 4.8 18.6
Grey 77.3 4.3 6.8 11.6
Huron 82.7 2.8 0.5 14.1
Muskoka 57.4 3.2 5.3 34.1
Ottawa 50.0 26.6 20.6 2.9
Oxford 81.0 9.9 4.1 5.0
Other Non-GGH Regions2 77.7 6.1 5.8 10.4
Ontario Total 63.2 13.8 17.5 5.4

Numbers may not add due to rounding

Land Registry Offices (LRO)1
(LRO boundaries generally do not coincide with municipal boundaries)
Foreign Transactions
Detached
Foreign Transactions
Semi-Detached & Townhouses
Foreign Transactions
Condominiums
Foreign Transactions
Other
GGH Total 49.6 12.0 36.9 1.6
Durham 77.6 12.9 4.7 4.7
Halton 73.9 19.4 6.0 0.7
Niagara South & North 87.6 6.7 4.5 1.1
Peel 44.3 25.0 30.1 0.6
Simcoe 68.4 15.8 5.3 10.5
Toronto 22.1 6.7 70.8 0.5
Waterloo 75.0 16.7 6.9 1.4
Wellington 72.7 13.6 4.5 9.1
Wentworth 66.0 16.0 8.0 10.0
York 69.2 13.7 16.5 0.5
Other GGH Regions3 60.0 8.0 8.0 24.0
Non-GGH Total 56.1 13.4 9.9 20.6
Bruce 57.1 0.0 0.0 42.9
Grey 50.0 0.0 0.0 50.0
Huron 100.0 0.0 0.0 0.0
Muskoka 8.3 0.0 0.0 91.7
Ottawa 44.1 31.7 22.4 1.9
Oxford 75.0 0.0 25.0 0.0
Other Non-GGH Regions2 62.7 6.3 4.9 26.2
Ontario Total 50.9 12.3 31.3 5.5
Numbers may not add due to rounding

Type of Purchaser (%)

May 27, 2017 – August 18, 2017

Approximately 94 per cent of the transactions in the GGH that involved at least one foreign entity were made by individuals and 6 per cent were made by corporations. The proportion of purchasers that were corporations was higher for transactions that involved at least one foreign entity, than Canadian transactions. This was true for transactions in the GGH, outside of the GGH, as well as Ontario as a whole.  

Land Registry Offices (LRO)1
(LRO boundaries generally do not coincide with municipal boundaries)
Canadian Transactions
Corporations
Canadian Transactions
Individuals
Canadian Transactions
Corporations & Individuals
Canadian Transactions
Total
GGH Total 3.7 96.3 0.1 96.8
Durham 2.9 97.1 0.0 98.3
Halton 2.9 97.1 0.0 97.1
Niagara South & North 6.1 93.9 0.0 97.7
Peel 1.7 98.2 0.0 98.0
Simcoe 4.1 95.9 0.0 98.9
Toronto 4.2 95.7 0.1 94.4
Waterloo 3.7 96.2 0.1 98.3
Wellington 4.7 95.2 0.1 98.8
Wentworth 5.4 94.5 0.1 98.7
York 3.0 97.0 0.0 93.1
Other GGH Regions3 4.1 95.7 0.2 99.5
Non-GGH Total 4.0 95.8 0.1 98.4
Bruce 3.7 96.1 0.1 99.1
Grey 5.7 94.1 0.2 99.7
Huron 4.9 94.2 0.9 99.6
Muskoka 4.2 95.7 0.1 98.6
Ottawa 3.1 96.9 0.0 97.8
Oxford 4.9 94.8 0.3 99.6
Other Non-GGH Regions2 4.2 95.7 0.2 98.4
Ontario Total 3.8 96.1 0.1 97.4
Numbers may not add due to rounding.
Land Registry Offices (LRO)1
(LRO boundaries generally do not coincide with municipal boundaries)
Foreign Transactions
Corporations
Foreign Transactions
Individuals
Foreign Transactions
Corporations & Individuals
Foreign Transactions
Total
GGH Total 5.6 94.3 0.1 3.2
Durham 17.4 82.6 0.0 1.7
Halton 5.9 93.3 0.7 2.9
Niagara South & North 6.7 93.3 0.0 2.3
Peel 6.3 93.8 0.0 2.0
Simcoe 23.3 76.7 0.0 1.1
Toronto 4.0 95.9 0.1 5.6
Waterloo 9.6 90.4 0.0 1.7
Wellington 13.6 86.4 0.0 1.2
Wentworth 10.0 90.0 0.0 1.3
York 1.6 98.4 0.0 6.9
Other GGH Regions3 30.8 69.2 0.0 0.5
Non-GGH Total 9.3 90.6 0.2 1.6
Bruce 0.0 100.0 0.0 0.9
Grey 66.7 33.3 0.0 0.3
Huron 50.0 50.0 0.0 0.4
Muskoka 38.5 61.5 0.0 1.4
Ottawa 3.7 96.3 0.0 2.2
Oxford 0.0 100.0 0.0 0.4
Other Non-GGH Regions2 10.2 89.5 0.3 1.6
Ontario Total 6.4 93.5 0.1 2.6
Numbers may not add due to rounding.

Endnotes

[1] Because some LRO boundaries do not coincide with municipal boundaries, the data may not fully represent what is covered in the GGH and may include areas outside of the GGH.  Any discrepancy is expected to be insignificant.

[2] Includes Algoma, Cochrane, Dundas, Elgin, Essex County, Frontenac, Glengarry, Grenville, Haliburton, Hastings, Kenora, Kent County, Lambton, Lanark, Leeds, Lennox, Manitoulin, Middlesex County, Nipissing, Norfolk, Parry Sound, Perth, Prescott, Prince Edward, Rainy River, Renfrew, Russell, Stormont, Sudbury, Thunder Bay, and Timiskaming.

[3] Brant, Dufferin, Haldimand, Northumberland, Peterborough and Victoria are combined due to low transaction counts.

Glossary

Term Definition
Additional Information Collection
(Prescribed Information for the Purposes of Section 5.0.1)
On April 24, 2017 the Province began collecting additional information to better understand trends in the housing market through the land transfer tax (LTT) system. This additional data will be used for the administration and enforcement of the Land Transfer Tax Act, and to support evidence‑based policy development with respect to Ontario's real estate market.

All persons who purchase or acquire land in Ontario that contains at least one and not more than six single family residences, or agricultural land, are required to provide this additional information.

For more information, refer to the Prescribed Information for the Purposes of Section 5.0.1.

Agricultural land Refers to farm lands used for farm purposes by the owner or used for farm purposes by a tenant of the owner and buildings thereon used for farm purposes, including the residence of the owner or tenant and of the owner’s or tenant’s employees and their families on the farm land.
Canadian Transaction A transaction involving exclusively a Canadian citizen, permanent resident of Canada, or a Canadian corporation (or any combination of these three entities).
Controlled In relation to the control of a corporation, means controlled, directly or indirectly in any manner whatever, within the meaning of section 256 of the Income Tax Act (Canada).

Dual citizenship

Every country decides whom it considers to be a citizen. If more than one country recognizes an individual as a citizen, then that individual is considered to be a dual citizen by the Government of Canada.
Family member With respect to an individual, means:
  1. the individual’s spouse,
  2. a child or step-child of the individual or the individual’s spouse,
  3. a parent or step-parent of the individual or the individual’s spouse,
  4. a grandparent or step-grandparent of the individual or the individual’s spouse,
  5. a sibling or step-sibling of the individual or the individual’s spouse, or any spouse of any such sibling,
  6. the spouse of a child of the individual, or
  7. a grandchild, step-grandchild or great-grandchild of the individual or the individual’s spouse, or the spouse of any such grandchild or great-grandchild.
Foreign corporation Means a corporation that is one of the following:
  1. A corporation that is not incorporated in Canada.
  2. A corporation that is incorporated in Canada and is controlled by one or more of the following:
    1. A foreign national.
    2. A corporation that is not incorporated in Canada.
    3. A corporation that would, if each share of the corporation’s capital stock that is owned by a foreign national or by a corporation described in paragraph 1 were owned by a particular person, be controlled by the particular person;

Note: For the purposes of the additional information, a corporation that is incorporated in Canada will not be considered a “foreign corporation” if its shares are listed on a stock exchange in Canada.

Foreign entity Means a foreign corporation or a foreign national.
Foreign national As defined in the Immigration and Refugee Protection Act (Canada), is an individual who is not a Canadian citizen or permanent resident of Canada and includes a stateless person.
Foreign Transaction Refers to a transaction which involved at least one foreign entity.
Greater Golden Horseshoe Region (GGH) Refers to the area of land comprised of the geographic areas of the following municipalities:

City of Barrie, County of Brant, City of Brantford, County of Dufferin, Regional Municipality of Durham, City of Guelph, Haldimand County, Regional Municipality of Halton, City of Hamilton, City of Kawartha Lakes, Regional Municipality of Niagara, County of Northumberland, City of Orillia, Regional Municipality of Peel, City of Peterborough, County of Peterborough, County of Simcoe, City of Toronto, Regional Municipality of Waterloo, County of Wellington, and Regional Municipality of York.

Land Registration Office (LRO) LROs are managed by the Ministry of Government and Consumer Services (MGCS) which allows persons to register and search official private property records using Ontario’s land registration system.
Land Transfer Tax (LTT) The LTT is a broad-based tax imposed on persons acquiring land, or a beneficial interest in land, in Ontario with few exceptions.  LTT is payable to the Province when the transfer is registered under the Land Titles Act or the Registry Act, as applicable.

If the acquisition in an interest in land is not registered, LTT is payable directly to the Province in respect of the unregistered disposition of a beneficial interest in land, within 30 days after the transaction closing date.

Mixed property types Refers to land that includes any combination of a single family residence, agricultural land, and any other type of land (e.g. commercial).
Non-GGH regions Refers to the area of land in Ontario that is not within the GGH (see the GGH definition above).
Non-Resident Speculation Tax (NRST) The NRST is a 15 per cent tax on the purchase or acquisition of an interest in residential property located in the GGH by individuals who are not citizens or permanent residents of Canada or by foreign corporations (foreign entities) and taxable trustees.

The NRST applies in addition to the general LTT in Ontario, and is effective as of April 21, 2017.

For more information, refer to the Non-Resident Speculation Tax.

Permanent resident of Canada Means a person who has acquired permanent resident status and has not subsequently lost that status under section 46 of the Immigration and Refugee Protection Act (Canada).
Single Family Residence Means a unit or proposed unit under the Condominium Act, 1998 or a structure or part of a structure that is designed for occupation as the residence of a family, including dependents or domestic employees of a member of the family, whether or not rent is paid to occupy any part of it and whether or not the land on which it is situated is zoned for residential use and,
  1. includes such a residence that is to be constructed as part of the arrangement relating to a conveyance, and
  2. does not include such a residence that is constructed or is to be constructed on agricultural land that is eligible to be classified in the farm property class prescribed under the Assessment Act.

For example: a detached and semi‑detached house, duplex, freehold townhouse, condominium townhouse, condominium apartment, and cottage.

Teranet Inc. A private corporation that is the exclusive provider of Ontario’s online property search and electronic land registration service.
Teranet Express Teranet Express is a self-serve channel that allows customers to access the Ministry of Government and Consumer Services (MGCS) Land Registration Database and the Ministry of the Attorney General (MAG) Writs Database.

This platform must be used to electronically access and complete the additional information collection form.

 

Type of Dwelling

Refers to a specific dwelling unit if the “type of property” acquired is a single family residence or mixed property types (which includes a portion of a single family residence). The following are available options for selection:
  • detached,
  • semi-detached,
  • duplex,
  • residential dwelling containing more than two units (e.g. triplex, fourplex),
  • condominium,
  • townhouse (freehold),
  • townhouse (condominium),
  • mobile home,
  • cottage, and
  • other (if selected, the purchaser must input a type of dwelling that is not found above).
Type of Property  Refers to land that is a single family residence, agricultural land or mixed property types.
Value of the Consideration This term can generally be considered as the purchase price of the land (found on the agreement of purchase and sale). The “value of the consideration” is declared in the land transfer tax statements for electronic land registrations, or in the land transfer tax Affidavit which is required to be filed with the Land Registrar.

However, the definition of the “value of the consideration” under the Land Transfer Tax Act is broad, and is not always limited to the purchase price stated in an agreement of purchase and sale.  For example, the assumption of any liabilities (e.g. a mortgage), or outstanding encumbrances on the land (e.g. lien on the property) may also be included in the “value of the consideration”.

Further Information

http://www.fin.gov.on.ca/en/tax/ltt/prescribedinfo.html

Contact Information

Name: Scott Blodgett

Email: Scott.Blodgett@ontario.ca

Organization: Ministry of Finance

Sub-Organization: Communications Services Branch

Appendix A: Ontario – Land Registry Offices

Land Gegistry Offices

Appendix B: NRST and Additional Information Collection – Comparison

  NRST Additional Information Collection
Effective date April 21, 2017 April 24, 2017
Grandparenting NRST does not apply to binding agreements of purchase and sale signed on or before April 20, 2017 and not assigned to another person after April 20, 2017. N/A 
Geographic Area Greater Golden Horseshoe Region (GGH) Ontario
Type of Property Land that contains:
  • at least one and not more than six single family residences.
Land that contains:
  • at least one and not more than six single family residences, or
  • agricultural land.
Applicable Transferees (e.g. Purchasers) The data will only show those who were subject to the tax (foreign entities, and taxable trustees);
  • Foreign entities:
    • Foreign nationals, or
    • Foreign corporations
  • Taxable trustees, means a trustee of:
    • a trust with at least one trustee that is a foreign entity, or
    • a trust with no foreign entity trustees if a beneficiary of the trust is a foreign entity
All persons who purchase or acquire the applicable land (see above) in Ontario.

This includes the following:

  • Canadian citizens and permanent residents of Canada;
  • Canadian corporations;
  • Foreign nationals
    • Persons nominated under the Ontario Immigrant Nominee Program;
    • Protected persons (refugees);
    • Spouses of Canadian citizens, permanent residents of Canada, nominees or protected persons;
  • Foreign corporations; and
  • Trustees, nominees, agents, or similar arrangements.

Transferees Excluded or Exempt1

  • Trustee acting for the following types of trusts:
    • Mutual fund trust
    • Real Estate Investment Trust (REIT)
    • Specified Investment Flow-Through (SIFT) trust
  • Nominee:
    • A foreign national who is nominated under the Ontario Immigrant Nominee Program
  • Protected persons (refugee):
  • Spouses:
    • A foreign national who jointly purchases residential property with a spouse, who is a Canadian citizen, permanent resident of Canada, nominee or protected person
  • Trustee acting for the following types of trusts:
    • Mutual fund trust
    • Real Estate Investment Trust (REIT)
    • Specified Investment Flow-Through (SIFT) trust

[1] In order to be eligible for an exemption from the NRST, the purchaser must meet all requirements (e.g. certification to occupy the land as a principal residence), and the land must be held exclusively by the transferee and their spouse (and potentially other eligible persons).

Note: For exclusions relating to trustees of mutual fund trusts, REITs, and SIFT trusts, the trustee must exclusively hold title (or must hold title with similar trustees or other eligible persons).



Greater Golden Horseshoe Region Data Summary:
Land Transfer Tax Additional Information

Purchases by Foreign Entities - Greater Golden Horseshoe Region (GGH)

Land Registry Offices (LRO)1 Total Transactions (A) Foreign Transactions
(B)
Foreign Transactions (%)
(C = B / A)
Distribution of Foreign Transactions within the GGH (%)
Durham 1,072 23 2.1 2.7
Halton 1,109 41 3.7 4.8
Niagara South & North 1,017 26 2.6 3.0
Peel 1,848 70 3.8 8.2
Simcoe 1,178 11 0.9 1.3
Toronto 5,940 429 7.2 50.1
Waterloo 1,507 45 3.0 5.3
Wellington 512 12 2.3 1.4
Wentworth 918 16 1.7 1.9
York 1,974 180 9.1 21.0
Brant, Dufferin, Haldimand, Northumberland, Peterborough, Victoria 2 1,207 4 0.3 0.5
Total 18,282 857 4.7 100#
# - Total does not add due to rounding
[1] Because some LRO boundaries do not coincide with municipal boundaries, the data may not fully represent what is covered in the GGH and may include areas outside of the GGH. Any discrepancy is expected to be insignificant.
[2] Brant, Dufferin, Haldimand, Northumberland, Peterborough and Victoria are combined due to very low transaction counts.

 

Purchases by Foreign Entities in Greater Golden Horseshoe Region

Map of Purchases by Foreign Entities in Greater Golden Horseshoe Region

* Sub-regions of the GGH that had very low transaction counts involving foreign entities are not presented in the diagram above.

Graphic description: The map shows the percentage of purchases by foreign entities in the Greater Golden Horseshoe Region. Corresponding data for each region is included in the Foreign Transactions percentage column (column four) in the table above.

According to preliminary data released by the government, approximately 4.7 per cent of the 18,282 transactions between April 24, 2017 and May 26, 2017 in the Greater Golden Horseshoe Region involved at least one foreign entity where purchasers completed the electronic additional information form. The completion of this form was voluntary between April 24, 2017 and May 5, 2017 and became mandatory on May 6, 2017.

A regional breakdown of the 4.7 per cent shows that the vast majority of purchases occurred in the Greater Toronto Area , with approximately 50 per cent of transactions in the City of Toronto and 21 per cent in York Region. 

The Non-Resident Speculation Tax (NRST) does not apply to agreements of purchase and sale signed on or before April 20, 2017. NRST exemptions are available to individuals nominated under the Ontario Immigrant Nominee Program, refugees and those who purchase residential property with a spouse who is a Canadian citizen, permanent resident of Canada, nominee or refugee. Rebates of the NRST may also be available to individuals who become permanent residents of Canada, who are international students or who have been working in Ontario. Both the NRST exemptions and rebates are subject to meeting specific eligibility criteria.

As a result, the 4.7 per cent should not be taken as a measure of transactions subject to NRST.

Douglas Porter, BMO’s Chief Economist, said recently that Ontario’s housing measures hit the bullseye, accomplishing almost exactly what the government was hoping to achieve, a calmer market without collapse (source: https://economics.bmocapitalmarkets.com/economics/amcharts/B19VRD-GG531N-6S6JB2-19VNS7-Z90.pdf).



Non-Resident Speculation Tax Update

Ontario has been collecting enhanced real estate data through the land transfer tax system since April 24, 2017 to better understand market forces impacting Ontario’s housing market. New data, including Canadian citizenship and permanent resident status, will help determine who may be subject to the Non-Resident Speculation Tax (NRST) announced in the Fair Housing Plan on April 20, 2017. 

From April 24 to May 26, 2017, 18,282 residential and agricultural properties were purchased or acquired in the Greater Golden Horseshoe region. Of the 18,282, approximately 4.7 per cent of the properties were purchased or acquired by individuals who are not citizens or permanent residents of Canada, or by foreign corporations. These transactions may be subject to the NRST.

  • The NRST was announced on April 20, 2017 and does not apply to agreements of purchase and sale signed on or before April 20, 2017. 
  • There are NRST exemptions available to individuals nominated under the Ontario Immigrant Nominee Program, refugees and those who purchase residential property with a spouse who is a Canadian citizen, permanent resident of Canada, nominee or refugee. 
  • Rebates of the NRST are available to individuals who have been working in Ontario, have become permanent residents of Canada and international students. 

NRST exemptions and rebates are subject to meeting specific eligibility criteria.

The government will release an update in the fall when data will more accurately reflect properties purchased or acquired by individuals who are not citizens or permanent residents of Canada, or by foreign corporations following the implementation of the NRST.