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Liberals to Eliminate GST on New Homes Under $1M for First-Time Buyers

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Staff Report
March 20, 2025 5:09pm

Edmonton, AB – Prime Minister Mark Carney has announced a major policy change aimed at easing homeownership challenges for Canadians. Speaking in Edmonton, Carney revealed that his government will eliminate the Goods and Services Tax (GST) on all newly built homes priced under $1 million for first-time homebuyers.

“This move will provide up to $50,000 in savings for families entering the housing market,” said Carney. “So many Canadians are doing everything right—working hard, securing good jobs, and saving for the future—but homeownership remains out of reach. It shouldn’t be this way.”

The new policy is part of the government’s broader strategy to address housing affordability across the country. With rising home prices and high mortgage rates making it increasingly difficult for young Canadians to purchase their first home, the GST removal is expected to ease financial burdens and stimulate the construction of more affordable housing.

Housing affordability has been a key issue in recent years, with demand outpacing supply in many major cities. The government hopes that this measure, combined with other housing initiatives, will make homeownership more accessible for middle-class Canadians.

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