Carney Eliminates GST on Homes Under $1M for First-Time Buyers

In a major move aimed at tackling Canada’s housing affordability crisis, Prime Minister Mark Carney announced that his government will eliminate the Goods and Services Tax (GST) on all homes priced under $1 million for first-time homebuyers. Carney made the announcement on X (formerly Twitter), stating:

“My government is eliminating the GST on all homes up to $1 million for first-time home buyers.”
— Mark Carney (@MarkJCarney), March 20, 2025

My government is eliminating the GST on all homes up to $1 million for first-time home buyers.

— Mark Carney (@MarkJCarney) March 20, 2025

The policy is expected to lower upfront costs for homebuyers and stimulate new housing construction. The Prime Minister highlighted that this tax cut could save Canadians up to $50,000, making homeownership more attainable for young families and individuals.

Interestingly, Carney’s announcement comes just months after Conservative Leader Pierre Poilievre proposed a nearly identical policy. In November 2024, Poilievre pledged to remove the GST on newly built homes priced below $1 million if elected. He argued that this measure would encourage the construction of an additional 30,000 homes annually.

As Canada continues to grapple with soaring home prices and limited supply, this GST exemption is being viewed as a significant step toward making homeownership more accessible. Both government and opposition leaders now appear aligned on the need for tax relief in the housing sector, signaling rare bipartisan support on this issue.

The effectiveness of this policy in boosting affordability and increasing housing supply will be closely monitored in the coming months as the real estate market reacts.