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Parliamentarians set to end the year by giving more bad news to prospective homebuyers as GST rebate still not passed

Homebuyers wishing to get GST relief to move forward and buy a new home in the new year will instead be let down by a government professing to be concerned with affordability. Parliament is set to rise for winter break, once again having missed many opportunities to prioritize passing Bill C-4, which contains the long-promised GST rebate for new homes. The lack of action is keeping would-be buyers on the sidelines, amplifying Canada’s housing supply crisis, and further hurting a struggling home building industry.

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Canadians still waiting for the removal of GST on new homes

Bill C-4 was introduced back in May to remove the GST for first-time buyers on homes under $1 million and lower it on homes between $1 million and $1.5 million. It needs to be passed and implemented immediately, and the exemption should be expanded to all buyers.

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Canada’s new home construction challenges ongoing amid economic uncertainty

CHBA’s 2025 Q2 Housing Market Index (HMI) saw little change since last quarter, with builders remaining decidedly pessimistic about sales conditions. CHBA’s single-family HMI is 24.9 (out of 100), and the multi-family HMI is 22.8 – both at near record lows, and firmly in negative builder sentiment territory for the twelfth straight quarter.

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CHBA applauds federal action to adjust GST rebate on new construction homes for first-time buyers

CHBA applauds the government’s move to table legislative proposals to amend the Excise Tax Act to make good on its promise to introduce a new GST rebate for first-time home buyers (named the “FTHB GST Rebate”), which will remove the GST on new homes at or under $1 million and lower it on homes between $1 million and $1.5 million for all first-time home buyers, effective May 27, 2025.

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Government misses important opportunity to enact critical housing campaign promise in Throne Speech

Today, the federal government missed its opportunity to use the Speech from the Throne to make good on its election promise to immediately implement the removal of the GST on new homes at or under $1 million and lower it on homes between $1 million and $1.5 million. The lack of actual implementation of this measure is keeping would-be home buyers on the sidelines, which is negatively impacting the construction of new homes.

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