Pierre Poilievre Proposes GST Exemption to Boost Housing Affordability
Pierre Poilievre, leader of the Conservative Party, has proposed removing the GST on new homes under $1.3 million. This GST exemption on new homes is part of his housing plan if elected in the upcoming federal election. The proposal aims to make housing more affordable for middle-class Canadians. This is especially important in cities like Vancouver and Toronto, where housing prices remain high. Learn more about the full proposal on Pierre Poilievre's official website.
A More Ambitious Plan Compared to the Current Government
This announcement comes shortly after interim Prime Minister Mark Carney proposed a similar GST relief. However, Carney's version applies only to first-time buyers purchasing homes under $1 million. Poilievre’s plan goes further. It offers the GST removal on new homes for all buyers, up to $1.3 million. According to Storeys, this could save buyers up to $65,000 per purchase. It could also lower mortgage payments by around $3,000 per year.
Impact on Housing Supply and Developers
Besides the GST cut on new homes, Poilievre wants cities to speed up housing approvals, lower development fees, and unlock more land for building. His goal is to add 36,000 new homes each year and generate $2.5 billion in tax revenue from the construction industry.
Developers and builders welcomed the GST waiver for new homes. Many agree that the threshold reflects the reality of today’s market. In cities like Toronto and Vancouver, even starter homes exceed $1 million. The Residential Construction Council of Ontario (RESCON) supported the move, highlighting its potential to offer real relief to buyers.
Concerns About Funding and Long-Term Effects
Some experts question the impact of canceling programs like the Housing Accelerator Fund to fund the tax cut. They argue that improving these programs might be more effective for long-term supply. If you want to learn more about GST’s role in housing prices, you can visit CMHC's GST guide for developers.
How Could This Affect Buyers Directly?
For example, a $1.25 million home could instantly drop by approximately $62,500 thanks to the GST exemption on new homes. This could make homeownership more achievable for many Canadians. However, the final impact will depend on whether Poilievre wins and implements the plan.
✅ Have Questions? Contact Jared Gibbons, Your Experienced Real Estate Agent
If you have any questions about how the GST exemption on new homes could impact your next home purchase or investment, don't hesitate to reach out. Jared Gibbons, a real estate agent with over 10 years of experience, will help you understand the process and find exactly what you're looking for.
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