festival south vmc vaughan.House prices in Toronto continue to plummet! The Canadian government has made frequent moves on the property market, and these policies have indeed had a profound impact on the property market. According to Global News, some real estate agents in Toronto, Vancouver and Montreal have revealed that their clients are getting a lot less offer from the homes they are watching or selling than they did in previous months.Please Visit: festival south vmc vaughan to Get Your VVIP Registration Today!
Among them, an agent from Toronto said that the previous 1000-square-foot apartments and semi-detached houses priced less than 1 million had received at least 15 offer in the past, but now they have received only about five, a reduction of more than half.
The real estate agent attributes the reason to the fact that, under the influence of higher interest rates and inflation, many buyers have become more cautious and prefer to sit on the sidelines rather than risk entering the market.
Although home sales in Toronto, Vancouver and Montreal have all slowed since April, average prices are still higher than last year, according to the data.
To this end, many netizens have complained on the forum, and some netizens said: it is predicted that there will be a wave of breach of contract in June!
At the federal level, on October 3, 2016, the Canadian federal government issued a new regulation called “real estate regulation” without warning and without submitting it to Parliament for discussion and vote.
The most striking of these rules is the announcement of changes to the real estate capital gains tax (Capital Gain Tax) rules. The value-added portion of the sale and purchase of “principal residence” (Principal Residence) under the original rules are generally exempted from VAT, and the new rules make it “necessary” for “foreigners” (who are neither Canadian citizens nor permanent residents of Canada) to pay real estate capital gains tax, which means that even if there is evidence that the houses bought by foreigners are indeed “primary residence”, it is almost impossible to obtain a capital gains tax exemption in the future.
But in the eyes of many professionals, the more important terms are actually related to mortgages and interest rates.
First of all, mortgage applicants can be approved without a “stress test” as long as they choose fixed-interest loans for more than five years, while the revised rules stipulate that any applicant who chooses any term, interest rate and form of mortgage is required to undergo a “stress test” calculated on the basis of the central bank’s five-year interest rate (4.64%). Only by passing the “stress test” can the mortgage be approved.
Second, the new rules raise the lending standards for low down-payment mortgages. Applications with down payments of less than 20% have a much higher threshold than those with higher down payments, and the new rules will further raise the threshold, making it harder for applicants to be approved.
The effective dates of the provisions in the new rules vary, such as the “stress test” clause is from October 17, the threshold for new home loans is from November 30, and the real estate capital gains tax exemption for foreigners is cancelled. it will really be reflected in next year’s tax season. The aim is to try to force foreigners to declare the price difference they get from buying and selling houses, thus helping to “plug tax loopholes” and cool “frequent home sales”.
The reason why various restrictions on “foreign buyers” were first introduced and discussed in British Columbia and Ontario, where two Chinese metropolitan areas are located in Vancouver and Toronto, is because house prices in these two places have soared year after year, and the problem of “housing affordability” has become increasingly prominent. Some political parties, politicians and people in the industry tried to direct social grievances to “foreign buyers”, especially the more high-profile Chinese buyers at that time, so they rushed to introduce regulatory measures aimed at “foreign buyers” to please voters and win election benefits.