As of May 5, 2017 a 15% tax will be required on the purchase of property in the Greater Golden Horseshoe region, which is basically Toronto down to Niagara Falls.
Ottawa is not affected by this additional tax (nor are other homes outside of the Greater Golden Horseshoe).
And prices in Ottawa are amongst the most reasonable of any big city in Canada.
Ottawa is a great place to buy, with our large city amenities, lots of waterways and greenspace, and friendly, and welcoming atmosphere.
This tax only applies to properties containing 1-6 residences under one title (therefore a condo apartment would be taxed, but a building with more than 7 units would not be taxed)
If there are any non-residents going on title, the entire amount of the purchase price is subject to tax, not just their share. For example, if four people are buying equal shares in a property, all 100% of the purchase price would be taxable. Also, if a permanent resident needs assistance from their foreign parents to qualify for a mortgage, even if the parents are on title for only 1%, tax is payable on the entire amount.
However, if a person is a Canadian citizen, they do not have to pay this tax even if they are non-resident.
There are a number of exemptions from this tax based on various criteria such as the type of property, falling under the Ontario Immigrant Nominee Program, or a “refugee” (detailed criteria at the link below).
Rebates of the tax are also available in certain situations, such as if the foreign national becomes a Canadian citizen or permanent resident of Canada within four years of the date of the purchase or acquisition.
There will likely be more questions and details ironed out as implementation progresses.
Full details can be found on the Government of Ontario website at: