Poilievre Pledges To Waive GST On New Homes Under $1.3M

Conservative Party Leader Pierre Poilievre has pledged to eliminate the federal Goods and Services Tax (GST) on new homes priced under $1.3 million if elected. He claims this move could save Canadians up to $65,000 and make housing more affordable in cities like Toronto and Vancouver.

In a campaign video shared on social media, Poilievre stated that removing the GST would not only reduce home prices but also lower annual mortgage payments by up to $3,000. He believes this tax cut could lead to the construction of an additional 36,000 homes each year, boosting income tax revenues by $2.52 billion from increased employment in the construction sector.

To fund this initiative, Poilievre plans to eliminate the Housing Accelerator Fund and the Housing Infrastructure Fund, which he considers ineffective. He argues that these programs have not significantly increased housing supply and that their removal would save the government approximately $8 billion.

The proposal has received support from industry groups. The Residential Construction Council of Ontario (RESCON) praised the plan, stating that extending the GST waiver to homes under $1.3 million better reflects current market conditions. Matthew Young, President of Republic Developments, also commended the Conservatives for considering industry feedback.

However, some experts have expressed concerns. Economist Mike Moffatt from the Smart Prosperity Institute noted that the initial proposal excluded many homes in high-priced areas like Greater Toronto and Vancouver. He suggested phasing out the rebate for homes priced up to $1.5 million to cover more properties in these regions. Moffatt also cautioned against cutting the Housing Accelerator and Infrastructure Funds, emphasizing their potential benefits with improved oversight.

This announcement comes shortly after interim Prime Minister Mark Carney called a snap election for April 28, 2025. Carney had previously pledged to eliminate the GST on new homes under $1 million for first-time buyers. As housing affordability remains a pressing issue in Canada, voters will be closely watching how each party plans to address the crisis.