However, Oey says those taxes need to be even higher for high-net-worth buyers.
“(Those fees) wouldn’t deter (foreign ownership) because it’s an insignificant amount,” he says, referring to the possibility of this fee structure in Canada. “It would have to be a higher amount to make this type of policy actually effective.”
But unlike Australia, where a glut of foreign buyers has pushed home prices up more than 30 per cent in just three years in cities such as Sydney, Canadian investment remains relatively low
– just 2.3 per cent in Vancouver and 2.4 per cent in Toronto, according to the Canada Mortgage and Housing Corp.
Still, Oey says Canada needs to keep abreast of these trends and nip any potential risk in the bud. That's especially true given the phenomenal year-over-year price growth Vancouver realized in April.
“It was the same question for mortgage rates five or six years ago,” he says. “Canada, being a leader in maintaining sound fiscal and financial policies, and we should continue that and consider these types of foreign ownership policies that could be beneficial for us.”