Foreign buyers tax sending Vancouver house hunters to Toronto

Here’s why the Toronto real estate market is so crazy
George Stamou/CTV Toronto

Vancouver's new tax on foreign homebuyers has some clients setting their sights to the east, to Toronto.

The tax, which was passed in late July by the B.C. Liberals, forces foreign nationals to fork over an additional 15 per cent of the home's value in property transfer taxes. The government said the bill was meant to help quell the competition local buyers face when trying to purchase a home in the area.

Recently released data showed that foreign buyers make up about 10 per cent of property sales in Metro Vancouver.

The tax adds up. With the average Vancouver-area residence costing $663,411 last month, buyers from outside Canada would face a transfer tax of $99,512.

So some buyers moving to Canada are eyeing properties in the country's largest city, where they can save a bit of cash while still living in a metropolitan area.

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