Liberal Party Leader Justin Trudeau said if re-elected his government would introduce new measures aimed at improving housing affordability, which would include a federal speculation tax on non-residents.
Trudeau said the one-per-cent annual levy would be modelled after the foreign buyers’ tax already in place in British Columbia. Ontario also implemented a similar tax under the previous provincial Liberal government.
In the announcement made from Victoria, B.C. on Thursday, Trudeau also said he would increase the value of a qualifying home in certain markets for the First-Time Home Buyers Incentive that was implemented earlier this month.
The cap on a qualifying home under the plan would increase to about $800,000 from $500,000 on homes in Toronto, Vancouver and Victoria if the Liberals win their re-election bid and would take effect in November.
Trudeau’s announcement came one day after he officially triggered the election campaign.