Federal Government sticks thumb in real estate pie

[Roy N.]

The Finance Minister announced steps to curb the influx of foreign capital into the Canadian Real Estate Market  (in which he really meant TO and Vancouver ... down east we are not really suffering from the influx of foreign money ... sure we lost a 50-unit deal a couple of years ago to a Chinese investor, but the property was not worth what s/he paid, so we'll see it back on the market eventually).

That said, Ottawa is only removing a loophole which has allowed foreigners to purchase a residence in Canada, claim it as their principal residence and then benefit from the personal residence {captial gains} tax exemption when they sell.   I may not have much affect on money flowing in, but may slow down turn once it is here and/or outflow back to its origin. 

What it will mean is more revenue for Ottawa.

The Federal Government also added a "stress test" on new mortgages.  

Since it is our practice to analyse a property using the posted rate - and then obtain a variable rate mortgage 2%+ lower, but set out payments as though we were paying a 5-yr fixed at the posted rate ... it will be not change for us ;-)