In the wake of Federal Minister of Finance Chrystia Freeland’s unveiling of Canada’s 2023 Fall Economic Statement (FES), a paradigm shift emerges. Unlike the previous Spring 2023 budget, this statement stands out for its resolute inclusion of explicit spending measures tailored to combat the housing and affordability crisis gripping the nation.

The FES reflects the government’s commitment to addressing these issues by preparing to unveil a series of affordability policies. It’s a collaborative effort, working hand in hand with stakeholders to shape the upcoming year’s budget. This renewed focus underscores the Liberals’ dedication to core priorities like housing affordability and the overall cost of living while maintaining fiscal prudence.

A notable highlight in the statement is the allocation of an additional $15 billion in new low-interest financing, slated to commence in 2025–26. This funding, earmarked for the Apartment Construction Loan Program (formerly known as the Rental Construction Financing Initiative), aims to amass over $40 billion in loan funding, ultimately leading to the creation of more than 30,000 new homes across Canada.

Furthermore, a substantial allocation of $1 billion over three years, commencing in 2025–26, has been earmarked for the Affordable Housing Fund. This fund aims to bolster non-profit, co-op, and public housing providers in constructing over 7,000 new homes by 2028, a pivotal step towards addressing the pressing housing shortage.

Another noteworthy addition in the updated plan is the extension of HST removal eligibility to co-operative housing corporations engaged in long-term rental accommodation. These corporations, akin to new purpose-built rental housing projects, can now leverage this provision, provided they meet the prescribed conditions.

Canada’s 2023 Fall Economic Statement presents a strategic blueprint for addressing the critical challenges of housing affordability and cost of living. Stay informed as these measures unfold, aiming to reshape the real estate landscape and provide sustainable solutions for Canadians seeking affordable housing options.

Understanding the trajectory of these updates is vital as they shape the country’s real estate narrative, influencing decisions and paving the way for a more inclusive and accessible housing market for all Canadians.

Written by: Realtor Sean Findlay

The post Canada’s 2025 Real Estate Plan: A Focus on Housing and Affordability appeared first on Black Wall Street Canada.

Last month, Canadian home prices encountered a setback due to increased interest rates, marking the first decline in five months according to the latest Teranet-National Bank Composite House Price Index.

The index, which monitors home prices across 11 CMAs based on observed or registered sales at least twice, experienced a 0.4% drop on a seasonally adjusted basis between September and October. Before seasonal adjustments, there was a 1% slip in September (following a 1.3% decrease the month before), signifying the second consecutive monthly decline.

Teranet and National Bank attribute these declines to a broader slowdown in the resale market. They point to rising interest rates, worsened affordability concerns, and a less vibrant job market as key factors contributing to this shift.

Market conditions have relaxed nationwide, resulting in an increase in the months of inventory to 4.1 in October. Although this level mirrors pre-pandemic figures, it remains lower than the historical norm, according to a press release accompanying October’s report.

While the composite index presents a weighted average of observed or registered home prices in various Canadian cities, specifically Victoria, Vancouver, Calgary, Edmonton, Winnipeg, Hamilton, Toronto, Ottawa-Gatineau, Montreal, Quebec City, and Halifax, Teranet and National Bank track prices in a total of 31 Canadian cities. Of these, 58% experienced some degree of softening in home prices.

Toronto (-1.6%), Edmonton (-1.2%), Vancouver (-1.1%), Ottawa-Gatineau (-1.1%), Saint John (-5.3%), Trois-Rivières (-3.3%), and London (-2.5%) saw month-over-month declines in home prices, whereas Montreal (+3.7%), Halifax (+1.1%), Winnipeg (+1.0%), Moncton (+4.6%), Kingston (+3.8%), and Peterborough (+2.6%) recorded increases.

The press release anticipates further price declines in the upcoming months, citing persistently high interest rates and a less favorable economic context as challenges for the sector, despite the historical demographic growth.

On a year-over-year basis, the index showed a 2.8% increase last month. This rise was attributed to gains in Halifax (+12.5%), Victoria (+6.5%), Quebec City (+6.3%), Moncton (13%), and Sherbrooke (9.4%). Conversely, Edmonton (-3.6%), Ottawa-Gatineau (-0.5%), London (-2.1%), and Barrie (-0.9%) experienced declines in home prices compared to the previous year.

Written by Realtor Sean Findlay

The post Almost 60% Of Canadian Markets Saw House Prices Lag In October appeared first on Black Wall Street Canada.

1. Rising Unemployment Rates:
   • Canada saw its unemployment rate ascend to 5.7% in October 2023, a slight rise from 5.5% in September 2023. This uptick underscores a cooling national economy, despite the addition of 18,000 jobs last month. The sectors of wholesale, retail trade, and manufacturing witnessed a decline in employment, whereas construction, and information and culture and recreation sectors added jobs.
2. Bank of Canada’s Rate Stance:
   • In a bid to curb surging inflation, the Bank of Canada has pursued an aggressive rate-hiking path since March 2022, increasing interest rates 10 times and spiking its benchmark rate by 475 basis points. However, in light of the slightly easing labour market, the Bank chose to leave rates unchanged in October.
3. Economic Ripple Effects:
   • This moderation in job growth signals that the economy is beginning to feel the strain of the central bank’s rate hikes, which is mirrored in the recent gross domestic product (GDP) data showing an economic regression in Q2 2023, with a further downturn anticipated for the third quarter.
4. Hourly Wages and Inflation:
   • Despite the economic headwinds, average hourly wages saw a 4.8% annual increase, albeit at a slower pace compared to the previous month, indicating a complex wage-inflation dynamic.
5. Mortgage Landscape:
   • These economic metrics directly inform the mortgage landscape. A stable interest rate for now may present a conducive environment for potential buyers, while the rising unemployment rate might entail a cautious approach in mortgage approvals.
6. Our Guided Approach:
   • As always, we are here to traverse these economic waves together. Through our comprehensive 3-step plan, we are dedicated to understanding, assessing, and executing tailored mortgage solutions that align with both current economic realities and our clients’ short and long-term goals.
7. Looking Ahead:
   • Monitoring these economic indicators closely, alongside the Bank of Canada’s monetary policy, will be crucial in adapting our strategies to ensure we continue to provide optimal mortgage solutions and advice.

The post Market Watch Q4 2023: Navigating the Waters of Canada’s Unemployment and Interest Rates appeared first on Black Wall Street Canada.

• A new report from Redfin highlights the ten fastest housing markets in the U.S., led by Albany, NY, where the typical home went under contract in just eight days. 
• The report also sheds light on the slowest markets. A typical home in Austin, TX—a former pandemic hotspot—now takes almost two months to go under contract. 

Homes in upstate New York are flying off the market in less than two weeks, while the typical home in Austin, TX now takes almost two months to go under contract. 

That’s the latest from a new report on Redfin, which highlights today’s fastest and slowest markets. And while buyers are still migrating to Florida, Miami and Fort Lauderdale rank among the top 10 slowest markets. 

THE FASTEST SELLING MARKETS IN THE U.S.

In September, the typical home in Albany, NY, went under contract in just over a week (8 days), making it the fastest housing market in the United States, followed closely by Rochester, NY, and Grand Rapids, MI. 

10 fastest U.S. markets:

1. Albany, NY (8 days)
2. Rochester, NY (9) 
3. Grand Rapids, MI (9) 
4. Buffalo, NY (11) 
5. San Jose, CA (12) 
6. Seattle, WA (12)
7. Omaha, NE (13)
8. Richmond, VA (13)
9. Oakland, CA (14)
10. Indianapolis, IN (14)

With the exceptions of Seattle and San Jose, all of the six fastest U.S. markets have median home sale prices below the national level of $412,081. And that’s one of the reasons homes in these markets are so quick to go under contract. 

Rochester, NY, is a great example with a typical home in this metro selling at $235,000 in September—making it the most affordable market in the country. Buffalo ranked at number eight with a median sale price of $255,000, while Albany and Grand Rapids ranked 21 and 24 with median sale prices of $310,000 and $320,000, respectively. Rankings are based on a list of U.S. metros with populations of 750,000 or more. 

Homes in affordable markets have grown more competitive as housing affordabilityworsens due to elevated mortgage rates and persistently high home prices. The average rate for a 30-year fixed mortgage reached 8% last week for the first time since 2000, significantly increasing the typical homebuyer’s monthly payment

The typical home in Buffalo takes 11 days to go under contract—one day fewer than a year ago—but some local agents are noticing signs of slowing in the market. 

THE SLOWEST MARKETS IN THE U.S.

In September, New Orleans was the slowest market in the nation, with the typical home taking 70 days to go pending—42 days longer than a year ago. 

13 slowest U.S. markets

1. New Orleans, LA (70 days)
2. Honolulu, HI (62)
3. Austin, TX (59)
4. West Palm Beach, FL (58)
5. McAllen, TX (53)
6. Charleston, SC (53)
7. New York, NY (52)
8. Miami, FL (51)
9. Fort Lauderdale, FL (51)
10. Chicago, IL (50) — tied with Nashville, TN (50) and San Antonio, TX (50)

At number two, Honolulu, HI, a typical home spent 62 days on the market in September—10 more than a year ago. And in Austin, days on market increased by 12 year over year to 59. 

During the pandemic, the typical home in Austin sold faster—before the surge in popularity sent home prices soaring, which priced out many homebuyers. In September, at $450,000 the typical Austin home sold for 9.2% more than the national median. 

Still, that gap has narrowed since last spring, when Austin prices peaked at 30% above the national median. 

Read the full report for more information. 

TAKEAWAYS FOR REAL ESTATE AGENTS

This is information you’ll want to share with sellers to help them understand local market conditions—for example, why their home may not sell as quickly as the home of their friend/relative who lives in one of the faster markets. 

Knowing how quickly homes are being purchased—as well as the typical sale prices of those properties—will also give buyers a sense of the competition for available listings in their area. 

The post 10 FASTEST HOUSING MARKETS IN THE U.S appeared first on Black Wall Street Canada.

With the rise in the demand for construction in Nova Scotia, let’s take a closer look at the construction infrastructure and how it can support the projected growth within the industry.

Construction and maintenance activity in Nova Scotia is expected to increase between 2021 and 2023, driven by strong and broad-based demand across the province’s residential and non-residential sectors. This is according to the latest labour market forecast data released today by BuildForce Canada.

In BuildForce Canada’s 2021–2030 Construction and Maintenance Looking Forward report for the province forecasts sectoral employment to remain high through 2026 before receding over the latter half of the scenario period. A rise in construction-sector employment of approximately 10% – or 2,600 workers – is expected to occur over the next few years before employment recedes slightly over the latter half of the decade.

“Construction activity in Nova Scotia was only moderately hindered by the impacts of COVID-19 in 2020, and the negative effects were largely confined to the residential and commercial markets,” says BuildForce Canada Executive Director Bill Ferreira. “An anticipated recovery in the residential sector, alongside a ramp-up in requirements related to numerous major health care, educational, roadwork, and engineering projects is expected to drive a strong expansion in construction employment across 2021 and 2022.”

Over the next 10 years, Nova Scotia’s construction industry is expected to see the retirement of nearly 8,700 workers – or about 28% of its 2020 labour force. Based on historical trends, the province’s industry could attract as many as 5,875 first-time new entrants aged 30 and younger from the local population over the same period.

“Nova Scotia’s population is aging, and its construction industry faces a shortfall of about 3,900 workers over the next decade,” says Ferreira. “It’s important for the construction and maintenance industry to reach out to younger people now and position construction as a career of choice.”

The development of skilled tradespersons in the construction industry takes years, and often requires participation in a provincial apprenticeship program. New registrations in the province’s 18 largest trade programs peaked at 1,280 in 2015, resulting in an increased supply of certified workers. Registrations have fluctuated over recent years since, but have remained around 900 registrations per year.

Based on projected new registrations and completion trends, several trades were identified as potentially at risk of undertraining the number of new journeypersons required by 2030. They include bricklayers, carpenters, heavy-duty equipment technicians, industrial electricians, industrial mechanics (millwrights), mobile crane operators, roofers, steamfitter/pipefitters, and welders. An ongoing commitment to training and apprenticeship development will remain necessary to avoid potential future skills shortages in the industry.

The COVID-19 pandemic has significantly complicated apprentice registration and completion rates in Nova Scotia. Limited data collected to date suggests that the pandemic has resulted in a steep decline in new registrations relative to employment. It has also imposed significant obstacles to the in-school delivery of training, testing, and certification. These impacts are likely to reduce the near-term numbers of new certified workers.

Building a sustainable and diverse labour force will require the construction and maintenance industry to increase recruitment from groups traditionally underrepresented in the current construction labour force, including women, Indigenous people, and new Canadians.

In 2020, there were approximately 3,650 women employed in Nova Scotia’s construction industry, of which 26% worked directly on construction projects. Of the 27,400 tradespeople employed in the industry, women made up only 3.5% of the total. Indigenous people accounted for approximately 5% of the total labour force in Atlantic Canada, which is equal to their share in the construction labour force. With about 81% of the industry’s Indigenous workers active in on-site construction, there could be further scope to increase the participation of Indigenous people in the construction trades. Increasing the participation rate of women and Indigenous people would go a long way to help the industry address its future labour force needs.

New Canadians currently comprise approximately 3.5% of Nova Scotia’s construction labour force. As provincial demographics point to declines in the number of younger workers available to enter the provincial labour force in the coming years, immigration will play an increasingly important role in the development of the province’s future workforce. Over the coming decade, the province is expected to welcome an average of 8,000 newcomers every year. This will make the immigrant population an important future source of labour force growth. Increasing the participation of new Canadians in the industry will be important to ensure the construction labour force remains adequate to the needs of the economy.

Published by Realtor Ian Lovell

Thank you for reading! Click here to read more great content

The post Construction growth in Nova Scotia on the rise appeared first on Black Wall Street Canada.

Are you ready to make your homeownership dreams a reality, but struggling to come up with the downpayment? Look no further than our Home Downpayment Assistance Program!

And now, you have the opportunity to learn all about it in our upcoming Home Downpayment Program Online Zoom Seminar Series!

Register Below – Upcoming Dates:

Saturday, April 29th, 2023 at 3:00 pm

Saturday, May 6th, 2023 at 3:00 pm

Saturday, May 13th, 2023 at 3:00 pm

What is the Home Downpayment Assistance Program?

Our Home Downpayment Assistance Program is designed to help eligible homebuyers cover the cost of their downpayment. With up to $150k in assistance available, we offer a flexible, competitive solution for first-time homebuyers or those who haven’t owned a home in the last three years.

Why Attend Our Home Downpayment Program Zoom Seminar?

By attending our Zoom seminar, you’ll get an in-depth look at our Home Downpayment Assistance Program and how it can benefit you. Our team of experts will guide you through the application process, eligibility criteria, and answer all your questions. Here are some reasons why you should attend:

• Learn about our program: Our seminar is the perfect opportunity to learn everything you need to know about our Home Downpayment Assistance Program, including eligibility requirements and how to apply.
• Get your questions answered: Our team of experts will be on hand to answer any questions you may have about the program, the application process, or homeownership in general.
• Connect with other homebuyers: Our seminar is a great way to connect with other homebuyers who may be in a similar situation to you. You can share tips, advice, and support as you navigate the homebuying process.

How to Register for Our Home Downpayment Program Zoom Seminar?

Registering for our Zoom seminar is quick and easy. Simply visit our Eventbrite page and click on the registration button. We’ll send you all the details you need to join our seminar on the scheduled date.

Conclusion

If you’re ready to take the first step towards homeownership, our Home Downpayment Assistance Program can help. And our upcoming Zoom seminar is the perfect opportunity to learn all about it from our team of experts. Don’t let a downpayment stand in the way of your dreams of home ownership!

The post Home Downpayment Assistance Program Zoom Seminar Series appeared first on Black Wall Street Canada.

With the rise in the demand for construction in Nova Scotia, let’s take a closer look at the construction infrastructure and how it can support the projected growth within the industry.

Construction and maintenance activity in Nova Scotia is expected to increase between 2021 and 2023, driven by strong and broad-based demand across the province’s residential and non-residential sectors. This is according to the latest labour market forecast data released today by BuildForce Canada.

In BuildForce Canada’s 2021–2030 Construction and Maintenance Looking Forward report for the province forecasts sectoral employment to remain high through 2026 before receding over the latter half of the scenario period. A rise in construction-sector employment of approximately 10% – or 2,600 workers – is expected to occur over the next few years before employment recedes slightly over the latter half of the decade.

“Construction activity in Nova Scotia was only moderately hindered by the impacts of COVID-19 in 2020, and the negative effects were largely confined to the residential and commercial markets,” says BuildForce Canada Executive Director Bill Ferreira. “An anticipated recovery in the residential sector, alongside a ramp-up in requirements related to numerous major health care, educational, roadwork, and engineering projects is expected to drive a strong expansion in construction employment across 2021 and 2022.”

Over the next 10 years, Nova Scotia’s construction industry is expected to see the retirement of nearly 8,700 workers – or about 28% of its 2020 labour force. Based on historical trends, the province’s industry could attract as many as 5,875 first-time new entrants aged 30 and younger from the local population over the same period.

“Nova Scotia’s population is aging, and its construction industry faces a shortfall of about 3,900 workers over the next decade,” says Ferreira. “It’s important for the construction and maintenance industry to reach out to younger people now and position construction as a career of choice.”

The development of skilled tradespersons in the construction industry takes years, and often requires participation in a provincial apprenticeship program. New registrations in the province’s 18 largest trade programs peaked at 1,280 in 2015, resulting in an increased supply of certified workers. Registrations have fluctuated over recent years since, but have remained around 900 registrations per year.

Based on projected new registrations and completion trends, several trades were identified as potentially at risk of undertraining the number of new journeypersons required by 2030. They include bricklayers, carpenters, heavy-duty equipment technicians, industrial electricians, industrial mechanics (millwrights), mobile crane operators, roofers, steamfitter/pipefitters, and welders. An ongoing commitment to training and apprenticeship development will remain necessary to avoid potential future skills shortages in the industry.

The COVID-19 pandemic has significantly complicated apprentice registration and completion rates in Nova Scotia. Limited data collected to date suggests that the pandemic has resulted in a steep decline in new registrations relative to employment. It has also imposed significant obstacles to the in-school delivery of training, testing, and certification. These impacts are likely to reduce the near-term numbers of new certified workers.

Building a sustainable and diverse labour force will require the construction and maintenance industry to increase recruitment from groups traditionally underrepresented in the current construction labour force, including women, Indigenous people, and new Canadians.

In 2020, there were approximately 3,650 women employed in Nova Scotia’s construction industry, of which 26% worked directly on construction projects. Of the 27,400 tradespeople employed in the industry, women made up only 3.5% of the total. Indigenous people accounted for approximately 5% of the total labour force in Atlantic Canada, which is equal to their share in the construction labour force. With about 81% of the industry’s Indigenous workers active in on-site construction, there could be further scope to increase the participation of Indigenous people in the construction trades. Increasing the participation rate of women and Indigenous people would go a long way to help the industry address its future labour force needs.

New Canadians currently comprise approximately 3.5% of Nova Scotia’s construction labour force. As provincial demographics point to declines in the number of younger workers available to enter the provincial labour force in the coming years, immigration will play an increasingly important role in the development of the province’s future workforce. Over the coming decade, the province is expected to welcome an average of 8,000 newcomers every year. This will make the immigrant population an important future source of labour force growth. Increasing the participation of new Canadians in the industry will be important to ensure the construction labour force remains adequate to the needs of the economy.

Published by Ian Lovell

Thank you for reading! Click here to read more great content

The post Construction growth in Nova Scotia on the rise appeared first on Black Wall Street Canada.

The report warns that this deficit could double the rental shortage numbers in GTA, Ontario to 177,000 units over the next decade if current levels of development are not increased. This could cause residential rental prices to skyrocket and leave many tenants struggling to find suitable accommodations.

The report states that the GTA needs to build more purpose-built rental housing faster to address this growing crisis.

“The majority of Ontario’s purpose-built rental housing stock was built before 1980, so new units are essential to provide more choice and take the pressure off aging units. We are calling on all levels of government to make new purpose-built rental housing a priority and to create a policy regime that recognizes the unique nature of this type of development,” said Tony Irwin, President and CEO of FRPO.– Building Industry and Land Development Association (BILD)

According to the report, pre-construction projects will need to take action immediately and pick up the pace by doubling their work efforts, in order to prevent Toronto’s rental deficit from further escalating.

Nevertheless, it is essential to acknowledge that even with such action being implemented, it will take many years of aggressive planning and development in order to make up for the years of lack of building available rental homes.

Ultimately, the report concludes that without a firm commitment from the government and developers, the rental crisis in the GTA will only worsen.

OPPORTUNITIES IN THE MAKING

Savvy buyers will take advantage of this rental home shortage and see rather see this as an opportunity to invest in a real estate property and become a landlord knowing that the supply and demand chain will bring forth a lot of real estate opportunities.

If you have been thinking about buying or have any questions about market conditions Contact Us for  Free Buyers Consultation.

The post RENTAL SHORTAGE IN TORONTO GTA, ONTARIO COULD REACH 177,000 UNITS OVER NEXT 10 YEARS appeared first on Black Wall Street Canada.

Canada’s ban on foreign home buyers is now in effect, barring commercial enterprises and individuals outside of Canada from buying residential properties in the country. Passed by Parliament in June of last year, the ban officially began on Jan. 1 and will remain in place for two years.

High levels of demand for housing throughout the COVID-19 pandemic prompted average home prices to skyrocket, hitting a national peak of $816,720 in February 2022. Competition within Canadian housing markets also reached new levels, with properties often receiving multiple offers and buyers submitting purchase agreements with few terms and conditions, leading them to assume more risk.

Although average home prices in Canada have since dropped, housing affordability remains a concern among many Canadians. Fuelling some of this anxiety are rising interest rates. Those with variable-rate mortgages are already paying hundreds more per month, compared to early last year. Those with fixed-rate mortgages, who have yet to renew, also say they are “terrified” of rising interest rates.

As the foreign homebuyers ban takes effect in Canada, here’s what you need to know about the regulations.

WHICH PROPERTIES ARE INCLUDED IN THE FOREIGN HOME BAN?

According to the Prohibition on the Purchase of Residential Property by Non-Canadians Act, a residential property includes detached homes or similar buildings, as well as semi-detached houses, rowhouse units, residential condominium units and other similar premises.

The legislation applies to residential properties that are located in a census metropolitan area or a census agglomeration, says the Canada Mortgage and Housing Corporation (CMHC). A census metropolitan area has a total population of at least 100,000 people, with at least 50,000 living in its core, while a census agglomeration has a core population of at least 10,000 people. The regulations also apply to vacant land that does not have any livable dwellings but is zoned for residential or mixed use.

•  Amid elevated interest rates, here’s what to expect from Canada’s housing market in 2023

Homes in municipalities with a core population of less than 10,000 are not subject to the ban, nor are recreational properties such as cottages and lake houses. Additionally, the law does not explicitly ban the purchase of larger buildings with multiple units.

WHY IS THE FOREIGN HOME BAN IN EFFECT?

According to the CMHC, the legislation aims to “make homes more affordable” for those living in Canada by cracking down on foreign investment.

“Homes should not be commodities,” Housing Minister Ahmed Hussen said in a press release issued on Dec. 21. “Homes are meant to be lived in, a place where families can lay down roots, create memories and build a life together.”

Housing affordability continues to be a challenge in Canada. Although average home prices have dropped in recent months, an assessment published by the Parliamentary Budget Office in September shows the average cost of a house is 67 per cent more than what the average Canadian household can afford.

•  Here are some of the new laws and rules coming into effect in Canada in 2023

A separate report published by Re/Max in September also points to a housing supply crisis in major Canadian metropolitan areas. By limiting foreign investor activity among residential properties, market watchers expect the ban will create new buying opportunities for Canadians by opening up supply.

Despite this, statistics from the CMHC released in 2017 show foreign buyers owned a small percentage of residential properties in different Canadian cities. Additionally, real estate experts have offered mixed reactions to the regulations when it comes to the impact they will have on Canada’s housing market.

WHO IS EXEMPT FROM THE FOREIGN HOME BAN?

Although the legislation targets non-Canadians, there are some exceptions. Those in Canada with temporary work permits are still allowed to buy residential properties, as are refugee claimants and international students who meet certain criteria.

The ban does not apply to those who are Canadian citizens or permanent residents, nor does it apply to non-Canadians who are looking to rent a residential property in Canada.

Non-Canadians with a spouse or common-law partner who is a Canadian citizen, permanent resident, person registered under the Indian Act or refugee are also exempt from the ban.

WHAT HAPPENS TO THOSE WHO BREAK THE RULES?

Anyone who’s neither a Canadian citizen nor a permanent resident will not be able to purchase a residential property in Canada as of Jan. 1 for two years, according to this new rule.

The ban also includes non-Canadian company owners, which the regulations say will prevent them from avoiding the prohibition.

Non-Canadians found in contravention of the ban will be fined up to $10,000 and may be ordered to sell the property, according to the legislation.

The impact of foreign ownership has been a hot topic when it comes to Canadian real estate for years, even as attention grows on the impact of domestic investors who the Bank of Canada says make up roughly one-fifth of purchases in recent years.

The post Canada’s Real Estate Ban on Foreign Home Buyers – What to know? appeared first on Black Wall Street Canada.

According to the City of Toronto’s website, “All residential property owners in Toronto will be required to declare the status of their property(s) annually, even if they live there. Declarations must be made by the homeowner or someone acting on behalf of the owner. The declaration will determine whether the Vacant Home Tax applies and is payable.”

“Principal residences may be left unoccupied for periods of up to a total of six months throughout the taxation year without being subject to the tax.”

Residents who fail to declare or make a false declaration could face a fine of $250 to $10,000. Renters are not required to declare.

Many Toronto residents have already received status declaration forms by mail — they outline the steps for declaring, the declaration deadline, and explain the Vacant Home Tax itself — but for those who have not, instructions and a declaration portal can be found on the City’s website. If required, homeowners can also submit a paper declaration form, which must be received by the City by the February 2 deadline.

Those subject to the Vacant Home Tax will be taxed an additional 1% of their property’s Current Value Assessment, and revenues collected will be put towards affordable housing initiatives.

There are a few exemptions to the new tax. Homeowners who do not occupy their homes for six months out of the year may be exempt if their property is undergoing repairs or renovations, if the principal resident of the vacant property is in a hospital or long-term or supportive care, if the property is required for occupation for employment purposes, in the event of legal ownership transfer, in the event of a court order, and in the event of death.

A city spokesperson added, “If a declaration is not received, the City will deem the property vacant and a Vacant Home Tax Notice will be issued and the amount added to tax bills. The City will send reminder notices in early March to advise that a declaration is required.”

Residential property owners will be able to make their occupancy status declaration here.

The post Toronto’s Vacant Home Tax is Coming, Forcing Homeowners to Declare Occupancy Status appeared first on Black Wall Street Canada.