March 20, 2025 – Edmonton, Alberta : In a bold move to combat Canada’s ongoing housing crisis, Prime Minister Mark Carney today announced a landmark tax reform aimed at making homeownership more affordable for first-time buyers.
The federal government will eliminate the Goods and Services Tax (GST) on homes priced at or below $1 million for first-time homebuyers — a change that could save Canadians up to $50,000 on their home purchase.
“Our government is laser-focused on lowering costs for Canadians and making homeownership a reality,” said Prime Minister Carney. “Eliminating the GST will save first-time homebuyers up to $50,000 and spur housing construction across the country.”
The new policy is part of the government’s broader strategy to tackle a growing affordability crisis marked by high demand, stagnant housing supply, and rising prices across the country. Experts believe the GST cut will have a dual effect: not only easing the financial burden on buyers, but also incentivizing new housing development, potentially increasing supply over time.
The announcement comes amid growing pressure on federal leadership to present concrete solutions to Canada’s strained housing market — especially for younger Canadians and families who have been priced out of ownership.
Prime Minister Carney promised that this is just the beginning, stating that a series of new measures to boost housing supply will follow in the coming weeks.
