TORONTO, Oct 19 (Reuters) - Ontario Premier Kathleen Wynne on Wednesday played down the chances of introducing a foreign buyers tax to cool Toronto’s housing market, saying the province will not take the exact steps as British Columbia.
Vancouver implemented a 15 percent tax on foreign home buyers to try to address a lack of affordability for residents and some lawmakers have suggested a similar tax could be implemented in Ontario.
“We have not made final decisions but we will not be doing exactly the same as what’s been done in British Columbia because we’re a different market,” Wynne told reporters at an event in Toronto. “We’re Ontario and we need an Ontario solution.”
She said Ontario was working with the federal government and officials in British Columbia on options for the province.
On Monday, Canada introduced new “stress tests” on borrowers to ensure they can afford future mortgage repayments if interest rates start to rise, one of a number of measures being implemented in an effort to cool markets.
Toronto has overtaken Vancouver as Canada’s hottest housing market after the Vancouver tax contributed to a drop in sales of homes in the city. (Reporting by Matt Scuffham; Editing by Bill Trott)