My question is to the Minister of Finance.

I hear concerns from my constituents about the housing market. Parents ask me how their children will be able to afford family homes in their communities. Young individuals are worried about their future in this province and if they will still have an opportunity for home ownership.

Speaker, I won’t mince words. Many people are worried about the housing situation they currently face in Ontario. That is why our government tabled our most recent housing plan last week. An essential part of this plan is increasing the non-resident speculation tax rate.

Can the Minister of Finance please explain why it was essential to increase the rate to 25% when it was just increased to 20% in March of this year?

Speaker, the federal government recently introduced in the 2022 budget a ban on foreign investors buying Canadian residential property. The federal government plan would completely restrict foreign buyers from purchasing a property anywhere in our country, effective January 2023.

With our government increasing non-residential speculation tax rates at the same time as the federal government introduces their restriction on foreign buyers, it appears that this is creating an overlap in regulations.

Speaker, could the Minister of Finance please tell us how our plan differs from what the federal government is proposing and how this will help my constituents enter the housing market?

Thank you to the member from Brampton West for that question—and all the members from Brampton that are surrounding me here.

We know the people of Ontario are facing the rising cost of living and shortage of homes, and our government has a strong mandate to help the people of Ontario find a home that is right for them. Ontario needs more housing, and we need it now.

We are building a durable foundation for action that will increase housing supply and attainability over the long term. That is why we announced an increase to the Non-Resident Speculation Tax to 25% to prioritize Ontario families and homebuyers. Mr. Speaker, this increase means Ontario has the most comprehensive NRST in the land.

And finally, Mr. Speaker, let me be clear: As part of this commitment to tackle Ontario’s housing crisis, we are prioritizing Ontario families and homebuyers, not speculators.

The foreign buyer ban the federal government is proposing would be temporary, and some proposed exceptions appear to still permit residential property purchases in Ontario that may be subject to the NRST.

But, Mr. Speaker, while we support the federal government’s actions following Ontario’s lead in addressing housing supply, this government knows the housing crisis is not temporary. It is a long-term challenge that requires long-term solutions. That is why we increased the NRST to 25% and eliminated loopholes by focusing relief eligibility to newcomers who commit to laying down roots in Ontario long-term so that Ontario has the most comprehensive Non-Resident Speculation Tax in the land.

Mr. Speaker, all levels of government need to work together to co-operate and address the housing crisis.