Toronto homeowners will be hit with a 4 per cent tax increase in 2010.

The increase was part of the proposed 2010 operating budget released by city officials Tuesday.

For the average Toronto home, priced at $407,374, that means an extra $93 in taxes.

In an attempt to ease the blow, Mayor David Miller reminded Torontonians that the city still has the lowest property taxes in the GTA.

"If you live in a condominium or a house in this city, you pay less in residential property taxes than anyone in the 905,” Miller said.

Meanwhile, the federal government is moving to tighten requirements for obtaining a mortgage.

The new rules will force borrowers to:

• meet standards for a five-year fixed-rate mortgage even if they’re trying to obtain a shorter term loan with a lower rate
• only withdraw up to a maximum of 90 per cent of the value of their homes when refinancing, compared to the current 95 per cent
• put down 20 per cent on ‘speculative’ investment properties to obtain government-backed mortgage insurance.

The changes are expected to take effect on April 19.

(The Globe and Mail)