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Clarification on the foreign buyer tax We’ve had questions regarding who'll be exempt from this tax. You’ll be exempt from paying the new tax if you: Are a Canadian citizen, even if you live abroad; or... Are legally classified as a permanent resident - someone who’s been given permanent resident status by immigrating to Canada, but is not a Canadian citizen. Permanent residents will have a valid permanent resident card issued by the Canadian government. Click here for more information on permanent residency. We’ve also clarified this information in the below article we sent you earlier today. Government to introduce a 15 per cent foreign buyer tax effective August 2 The provincial government will implement a 15 per cent foreign buyer tax on all residential transactions effective August 2, 2016. The tax will be added to the Property Transfer Tax and will apply to all residential properties purchased by foreign nationals or foreign-controlled corporations. The new tax will be payable on applicable transfers registered with the Land Title Office on or after August 2 regardless of when the deal was completed. The tax will apply to any transferee that is a foreign national, foreign corporation, or taxable trustee. Foreign nationals are defined as people who aren’t Canadian citizens or don’t have permanent resident status in Canada. (Permanent residents will have a valid permanent resident card issued by the Canadian government.) Housing affordability concerns all of us who live in the region. Implementing a new real estate tax, however, with just eight days’ notice and no consultation with the professionals who serve home buyers and sellers every day needlessly injects uncertainty into the market, Dan Morrison, Board president said. Government has had a long time to take action on the affordability issue, yet they decide to bring this new tax in over a long weekend, with no notice, and no time to prepare. It would have been prudent to seek consultation from the people most knowledgeable about the impact. Under the new tax, for example, a foreign buyer or foreign-controlled entity will pay an additional $300,000 in tax on a $2 million home. To minimize short-term volatility in the market, we’re calling on government to exempt real estate transactions that are in the process of closing from this new tax, Morrison said. Foreign corporations are any corporation not incorporated in Canada, or are incorporated in Canada but controlled in part, or wholly, by a foreign national or corporation. Publicly traded companies are excluded. Commercial properties are excluded, and mixed-use properties will only pay the tax on the portion of the property’s value that’s for residential use.

Home sales smash April recordHomeNews by Justin da Rosa16 May 2016 Most Read... Warning! Fake client trying to lure agents to properties Industry leaders are cautioning agents working Toronto’s west end, warning them about a seemingly ideal client intent on luring them to vacant properties. Controversial online brokerage shuts down Four months after having its hand slapped by TREB, this online brokerage is closing its doors. After a record-setting March, home sales continue to perform at an historic pace. National home sales set new monthly records over the past two months, even as activity in Greater Vancouver and the GTA appears to have topped out, CREA President Cliff Iverson said. With almost three-quarters of all local markets posting sales gains in April, there are plenty of other places where sales are climbing as we head into the busiest time of the year for homebuyers. National home sales increased by 3.1% month-over-month in April and activity was up 10.3% year-over-year, according to the Canadian Real Estate Association. The national home sale price skyrocketed 13.1% year-over-year. Not including Toronto and Vancouver, the national sale price increased 8.7% year-over-year. Supply shortages and tight housing market conditions have become self-reinforcing in the GTA, said Gregory Klump, CREA’s Chief Economist. The Greater Vancouver Area appears to be heading in that direction too. While significant home price gains may entice some homeowners in these markets to list their home for sale, the issue for many is that the decision to move means they would also be looking to buy while competition for scarce listings is fierce. As a result, many homeowners are deciding to stay put and continue accumulating capital gains. That’s keeping listings off the markets at a time when they are already in short supply.

Home sales remain at record levels across Metro Vancouver Last month was the highest selling April on record for Metro Vancouver. Residential property sales in the region totalled 4,781 in April 2016, an increase of 14.4 per cent from the 4,179 sales recorded in April 2015 and a decrease of 7.6 per cent compared to March 2016 when 5,173 homes sold.... April sales were 41.7 per cent above the 10-year sales average for the month. Home buyer competition remains intense across the region, Dan Morrison, REBGV president said. Whether you’re a home buyer or seller, it’s important to work with your local REALTOR to get the information you need and to develop a strategy that will help you navigate today’s market. New listings for detached, attached and apartment properties in Metro Vancouver totalled 6,127 in April 2016. This represents an increase of 3.9 per cent compared to the 5,897 units listed in April 2015 and a 2.4 per cent decline compared to March 2016 when 6,278 properties were listed. "While we’re seeing more homes listed for sale in recent months, supply is still chasing this unprecedented surge of demand in our marketplace," Morrison said. The total number of properties currently listed for sale on the MLS system in Metro Vancouver is 7,550, a 39.3 per cent decline compared to April 2015 (12,436) and a 2.6 per cent increase compared to March 2016 (7,358). The sales-to-active listings ratio for April 2016 is 63.3 per cent. This is indicative of a seller’s market. Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12 per cent mark, while home prices often experience upward pressure when it reaches the 20 to 22 per cent range in a particular community for a sustained period of time. The MLS Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $844,800. This represents a 25.3 per cent increase compared to April 2015. Sales of detached properties in April 2016 reached 1,979, an increase of 9 per cent from the 1,815 detached sales recorded in April 2015. The benchmark price for detached properties increased 30.1 per cent from April 2015 to $1,403,200. Sales of apartment properties reached 2,107 in April 2016, an increase of 33.4 per cent compared to the 1,579 sales in April 2015.The benchmark price of an apartment property increased 20.6 per cent from April 2015 to $475,000. Attached property sales in April 2016 totalled 695, a decrease of 11.5 per cent compared to the 785 sales in April 2015. The benchmark price of an attached unit increased 22.1 per cent from April 2015 to $608,600.

Newly Built Home Exemption The Newly Built Home Exemption reduces or eliminates the amount of property transfer tax you pay when you purchase a newly built home. A newly built home includes:...Continue reading

The rules around the income from rental units considered in home loan applications submitted to the CMHC are changing. The agency announced Monday that, from September 28, it will allow 100 per cent of the rental income from a unit to be considered for new loan applications submitted to it for mortgage insurance. That means that a secondary rentals suite’s income, minus costs including property taxes, will boost the size of the loan that buyers can secure.... Qualifying units must have sustainable income, proven by two years of rental rent payments. These payments will be averaged to assess the unit’s income. Applicants will also need a credit rating of at least 680. Properties with more than a single rental unit will have slightly different rules and this change is most positive for homeowners with one rental unit.