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.
So many Canadians are doing everything right. They’ve worked hard, secured good jobs, and saved for the future. But often, it’s not enough to buy a home.
— Mark Carney (@MarkJCarney) March 20, 2025
It shouldn’t be this way. So we’re making it easier to buy your first home — and removing the GST on homes up to $1 million. pic.twitter.com/7gkDOipRJM
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.”
CTVNews.ca will have in-depth coverage on Sunday and exclusive reporting throughout the campaign. A CTV News Special Report will be hosted by CTV News Chief Anchor & Senior News Editor Omar Sachedina and Chief Political Correspondent Vassy Kapelos on Sunday and will be streaming on all platforms.
