Carney says he will eliminate GST for some first-time homebuyers

Prime Minister Mark Carney makes an announcement on improving housing supply and affordability in Edmonton.

Prime Minister Mark Carney has announced that his government will eliminate the Goods and Services Tax (GST) for first-time homebuyers to address Canada’s housing crisis.

“Our government is laser-focused on lowering costs for Canadians and making homeownership a reality,” Carney said in a press release on Thursday.

The tax cut applies to “all new and substantially renovated” homes at or under $1 million, he told reporters during a press conference in Edmonton, and is said to save Canadians up to $50,000.

“By eliminating the GST, Canadians will face lower upfront housing costs and keep more money in their pocket,” the press release reads. “Eliminating the GST will also have a dynamic effect on increasing supply – spurring the construction of new homes across the country.”

Despite this promise, Carney can only make it a reality if his government is elected in the next federal election, which is rumoured to be called as soon as Sunday, according to a source.

In response to Carney’s announcement, Conservative Leader Pierre Poilievre accused the liberals of plagiarizing him “a few days before calling an election,” he wrote in a post on X. He added that they unanimously voted against the same pledge he made last year.

“They are just trying to trick people into giving them a fourth term,” he said.

In Oct. 2024, Poilievre released a six-minute video outlining his pledge to “axe the sales tax on homes,” with the caption saying, “You will pay no GST on new homes of under $1 million, saving up to $50,000.”

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