Liberals vow to cut GST for first-time homebuyers purchasing homes for $1M or less

Prime Minister Mark Carney has announced that the federal government will eliminate the Goods and Services Tax (GST) for first-time homebuyers purchasing homes priced at $1 million or less. This initiative aims to make homeownership more attainable for Canadians entering the housing market

The removal of the GST could save buyers up to $50,000, depending on the home's price. For example, a home priced at $1 million would see the full $50,000 savings, while less expensive homes would benefit proportionally.

Carney emphasized that this measure is part of the government's broader strategy to address housing affordability and supply challenges. By reducing upfront costs, the policy is expected to encourage more Canadians to consider homeownership.

The Prime Minister also highlighted that eliminating the GST for first-time buyers could stimulate the construction of new homes. Lowering costs for buyers may increase demand, prompting builders to develop more housing units to meet this demand.

This announcement comes at a time when housing affordability has become a pressing issue, especially for younger Canadians. Rapid population growth has outpaced housing construction, leading to increased prices and limited availability in many regions.

The government plans to introduce additional measures aimed at increasing housing supply and affordability. Details of these initiatives are expected to be released in the coming weeks.