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Mortgage Broker News | 21 Feb 2014, 10:01 AM Agree 0
Hong Kong has found a novel way to cool its housing market and one broker believes a similar initiative could do the same in Canada.
  • Kevin | 21 Feb 2014, 12:08 PM Agree 0
    That is fine if you have a land transfer tax. Alberta does not.
  • Angela Wong-Liao | 21 Feb 2014, 12:26 PM Agree 0
    I fully agree for additional land transfer tax for foreign investors because it help our local Canadians to becoming home owners if the real estate prices dropped
  • Anthony C. | 21 Feb 2014, 01:10 PM Agree 0
    More taxes...???

    Sorry people, but taxation is not the answer to all our woes...foreign investors already pay federal taxes on real estate sales if they are in fact a non-resident...

    If we are speaking of the true definition of a non-resident (for tax purposes if you have not lived here for at least 183 consecutive days in the past year), one must apply to the CRA for something called a Certificate of Compliance.

    In general, they need to pay 25 per cent of the capital gain on their sale in order to get the certificate.

    If the certificate is not received prior to closing, builders or vendors must insist on a holdback, typically 25 per cent of the entire purchase price, until the certificate is in fact produced. (In some cases the holdback amounts to 50 per cent of the purchase price.)

    So if slowing down the market by stifling investment is in your opinion the way to go, then by all means push for this...however, I rather enjoy knowing that foreign investment is coming into Canada. Additionally, inflation is on the rise and therefore rates will eventually increase and the natural progression of a higher cost of funds will evidence fewer sales and thus devalue real estate...

    Slow and steady periodical erosion of value due to more natural economic occurrences is in my opinion a more pragmatic outcome than cutting off the arm which fed and made the body fat in the first place...
  • Omer Quenneville | 24 Feb 2014, 12:51 PM Agree 0
    Of course taxation is never the answer but the tax is in place and needs to be either removed or modified. As it stands now it is more a penalty than a tax.
  • Paolo Di Petta | dipettamortgage.com | 25 Feb 2014, 02:58 PM Agree 0
    The real irony here is that Land Transfer taxes really haven't helped in Toronto - in fact, they've probably contributed to the higher prices as sellers want to recoup their costs.

    The only way to fix this is to end cheap money and to incentivize principal repayments (on Owner Occupied only) with tax credits. This will make all this leveraging less profitable, especially for investment properties.
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