CHBA WELCOMES FEDERAL GOVERNMENT REMOVING GST ON NEW CONSTRUCTION HOMES FOR FIRST-TIME BUYERS

OTTAWA, ON – March 20, 2025 – Today’s announcement by Prime Minister Mark Carney that the Government of Canada will eliminate the Goods and Services Tax (GST) for first-time homebuyers on homes at or under $1 million is a welcome move to help make housing more affordable for those looking to buy their first home. It will also help spur the creation of more housing supply, which is much needed. CHBA has also argued that while an important permanent move, GST relief is especially significant now as it will help to counter price increases due to tariffs.

CHBA has been advocating for years with all major parties for a change to GST thresholds, which have not changed since the introduction of the GST in 1991. At that time, the federal government committed to adjusting the GST New Housing Rebate thresholds every two years to reflect changes in housing prices and protect housing affordability over time. However, despite the fact that house prices have increased substantially since then, the thresholds have never been adjusted by any government since.

Earlier in the fall, the Conservative Party of Canada made its own proposal to remove the GST on new homes under $1 million.

“We are pleased that two major federal parties have made substantial promises regarding GST on new homes. In light of the tariff war with the United States, it is doubly important that all avenues to improve housing affordability for Canadians are explored. Addressing the GST on new housing is certainly a step in the right direction in ensuring Canada has a comprehensive plan to support better housing affordability and supply in the face of increasing construction costs, and is long overdue,” said CHBA CEO Kevin Lee.

CHBA will continue to provide its recommendations to all federal parties dedicated to the goal of removing barriers to homeownership.

 

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About the Canadian Home Builders’ Association
The Canadian Home Builders’ Association (CHBA) is the voice of the residential construction industry in Canada, representing some 8,500 member firms across the country. Our membership spans new home builders, renovators, developers, trade contractors, building material manufacturers and suppliers, lenders, and other professionals in the housing sector.

MEDIA INQUIRIES
Journalists wishing to interview Kevin Lee, Chief Executive Officer of the Canadian Home Builders’ Association are encouraged to submit their request by email to media@chba.ca.