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PM Mark Carney Announces Elimination of GST on New Homes (www.cpac.ca)
submitted 2 months ago* (last edited 2 months ago) by [email protected] to c/[email protected]
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First time home buyers will not be charged GST (5%) when buying a home, as long as the place they're buying costs less than $1M. This means that people buying a home for the first time will save up to $50k on their purchase.

Edit: Note, GST is mostly only charged when buying newly built homes, so this won't have any effect for people buying used homes.

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[-] [email protected] 2 points 2 months ago

Yes, but making new homes cheaper and more in demand will increase demand for them and that’s where developers can increase supply

[-] [email protected] 2 points 2 months ago

Isn't high demand the whole reason that prices are so high to begin with?

[-] [email protected] 2 points 2 months ago

The issue is elasticity of supply

Housing is relatively inelastic, it’s expensive and takes a long time to build and is sensitive to interest rates.

Improving demand for the most flexible portion of the market might result in increased supply from developers.

[-] [email protected] 2 points 2 months ago

Your economics is all screwed up.

The whole point is that this isn't making homes cheaper, it's making homes more expensive, but the government is picking up part of the tab. First time home buyers will be willing to pay a higher price for a given newly built house because some of the money they'll be spending won't be their own. If people who aren't first time home buyers want to compete, they'll also have to pay more for the same house.

this post was submitted on 21 Mar 2025
180 points (99.5% liked)

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