In a significant move to tackle housing affordability, Prime Minister Mark Carney has announced the elimination of the Goods and Services Tax (GST) for first-time homebuyers purchasing new or substantially renovated homes priced under $1 million. 
This policy aims to reduce upfront costs, potentially saving buyers up to $50,000, while also stimulating the construction of new homes across the country. 
This policy aims to reduce upfront costs, potentially saving buyers up to $50,000, while also stimulating the construction of new homes across the country. ___________________________________________________________________________
How This Works 
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The 5% GST has long been an added expense for Canadians looking to buy a brand-new home. 
By removing this tax, the government is making homeownership more attainable for young families and first-time buyers.
By removing this tax, the government is making homeownership more attainable for young families and first-time buyers.For example, on a $500,000 home, eliminating GST means saving $25,000—a game-changer for many aspiring homeowners! 
Example:Meet Sarah & John, a couple in their 30s who have been renting in Vancouver, struggling to save enough for a down payment. With this policy, they can now afford a newly built townhouse without the extra tax burden, making their dream of homeownership a reality! 
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Boosting Housing Supply 
Beyond helping individual buyers, this move will encourage developers to build more homes. 
Example: Developers like Maple Leaf Homes are already planning to expand their projects, knowing that this tax break will increase demand for new housing. This could help ease the housing shortage, especially in cities like Toronto and Vancouver, where supply is tight. 
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Political Comparisons 
Interestingly, this policy is similar to a proposal made by Conservative Leader Pierre Poilievre in 2024, who suggested eliminating GST on new homes under $1M for all buyers, not just first-time homeowners. 
The Liberals’ approach, however, focuses only on first-time buyers, aiming to help those struggling to enter the market for the first time. 
The Liberals’ approach, however, focuses only on first-time buyers, aiming to help those struggling to enter the market for the first time. _________________________________________________________________________
What This Means for You 
If you’re a first-time homebuyer, this is great news! You’ll save thousands when purchasing a newly built home.
If you’re a homebuilder, expect increased demand for new construction homes.
If you’re a real estate investor, this may shift buyer demand toward new builds, impacting the resale market.
What do you think? Will this help first-time buyers in Canada? Let me know in the comments! 
Read the full article on CTV News https://www.ctvnews.ca/