Canada’s Prime Minister Carney announced on 20 March 2025 that the government will eliminate the Goods and Services Tax (GST) for first-time homebuyers on homes at or under CAD 1 million. This tax cut will save Canadians up to CAD 50,000.
“Our government is laser-focused on lowering costs for Canadians and making homeownership a reality. Eliminating the GST will save first-time homebuyers up to CAD 50,000 and spur housing construction across the country. We will announce a series of new measures to increase housing supply shortly. It’s time for focused action to solve the housing crisis, and it’s time to build a Canada you can afford, ” said Mark Carney, Prime Minister of Canada.
By eliminating the GST, the government hopes Canadians will face lower upfront housing costs, and it will boost the housing supply by encouraging new home construction nationwide.
