Conservatives pledge to eliminate GST on new homes priced under $1.3 million

March 25, 2025 TruthUSA

Conservative Leader Pierre Poilievre has reasserted his commitment to eliminating the federal sales tax on new homes up to $1.3 million, expanding on a promise made in October 2024.

Speaking in Vaughan, Ont. on March 25, Poilievre stated, “Under my plan, it will be easier for a young couple in Surrey, a single mom in Oshawa, and a tradesman in Regina to get on the housing ladder, just like their parents did.”

The Conservatives project that removing the GST on new homes could save homebuyers up to $65,000 on the purchase of an average home in major Canadian cities, as well as reducing annual mortgage payments by approximately $3,000.

To finance this tax cut, Poilievre plans to eliminate existing Liberal housing programs like the $6 billion Canada Housing Infrastructure Fund and $4 billion Housing Accelerator Fund, which the Conservatives argue have not effectively increased housing supply.

Back in October 2024, Poilievre had originally proposed eliminating the GST on new homes under $1 million, estimating that it would save Canadians $40,000 in mortgage payments on an $800,000 home.

The Conservatives estimate this measure would cost between $4 and $5 billion, to be offset by increased construction of 36,000 additional homes due to the GST cut stimulating demand.

In addition to the GST cut, the Conservatives have proposed other measures to tackle Canada’s housing crisis, such as streamlining bureaucracy to encourage new housing supply, incentivizing cities that meet homebuilding targets, and linking transit and infrastructure funding to high-density housing construction.

Meanwhile, Prime Minister Mark Carney recently announced a similar policy to Poilievre’s initial housing proposal, stating on March 20 that his government would eliminate the GST for first-time homebuyers on new and “substantially renovated” homes under $1 million, offering $50,000 in savings to new homebuyers.

Carney’s Liberals have also pledged to enhance Canada’s housing plan by allocating funds to modular and pre-fabricated housing for faster construction, reducing barriers to housing like paperwork, taxes, and fees, and providing training for more construction workers.

On March 24, NDP Leader Jagmeet Singh unveiled a plan to reserve 100% of suitable federal Crown land for the construction of over 100,000 rent-controlled homes by 2035, while also expanding the Public Land Acquisition Fund to acquire more land for affordable housing.

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