Canada’s newly installed Prime Minister Mark Carney announced the federal government will eliminate the Goods and Services Tax (GST) for first-time homebuyers on homes at or under $1 million.
In a statement, Carney said the tax cut will save Canadians up to $50,000 and help encourage more younger households to pursue homeownership. Carney, who is expected to call a snap election for April 28, did not give a timeline on when the GST cut will take effect.
“Our government is laser-focused on lowering costs for Canadians and making homeownership a reality,” said Carney. “Eliminating the GST will save first-time homebuyers up to $50,000 and spur housing construction across the country. We will announce a series of new measures to increase housing supply shortly. It’s time for focused action to solve the housing crisis, and it’s time to build a Canada you can afford.”
Elechia Barry-Sproule, president of the Toronto Regional Real Estate Board, welcomed the announcement and predicted the GST elimination will also lead to the expansion of housing inventory.
“Eliminating the GST could help spur new housing construction to meet demand and we encourage the provinces to match this announcement,” said Barry-Sproule. “We look forward to further announcements to increase Canada’s housing supply and support sustainable real estate market growth.”
