May 5th - 2010

Ontario budget: little help for real estate

The Ontario 2010 budget was highlighted by a large provincial deficit and little in the way of help for the provincial real estate industry.

The Ontario 2010 budget was highlighted by a large provincial deficit and little in the way of help for the provincial real estate industry.

The 2010 budget forecasts a deficit of $21.3 billion for 2009-10 and $19.7 billion in 2010-11, growing the provincial debt to $232.2 billion by 2012-13. The Budget lays out a plan to eliminate the deficit by 2017-18 through spending restraint, salary freezes and improving efficiency in the delivery of services, especially healthcare.

Deficits lead to inflation and interest rate increases which make housing and real estate more expensive, reduces productivity and causes job loss. Deficits also increase the size of the provincial debt which forces more tax payer dollars away from social programs and into debt financing.

The budget did not provide any HST relief for home buyers and sellers. OREA’s 2010 pre-budget submission called on the Government of Ontario to cut the land transfer tax rate to offset the effect of the HST on homebuyers.

On a positive note, the budget introduces two new measures that will benefit homeowners. First, the budget proposes to help low and middle income families and single people in Northern Ontario with their energy costs by introducing a new permanent Northern Ontario Energy Credit.

In addition, the Budget proposes introducing legislation to convert the Ontario Property Tax Credit to the Ontario Energy and Property Tax Credit that will provide up to $1,480 in property tax relief to low and middle income Ontarians.

To learn more, read OREA’s 2010 Ontario Budget analysis on the OREA website, under Government Relations, policy submissions.

To read a copy of the 2010 Ontario Budget, visit the Ministry of Finance website.

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For more information contact

Ontario Real Estate Association

Jean-Adrien Delicano

Manager, Media Relations

JeanAdrienD@orea.com

416-445-9910 ext. 246