Posts Tagged ‘housing affordability’
GST Rebate for First-Time Home Buyers finally passes through House of Commons but Senate Rises before Passing
Bill C-4, which contains the GST Rebate for First-Time Home Buyers, has passed through the House of Commons. However, the Senate has now also been adjourned for winter recess and will not return until February 3, which means GST relief remains on hold and will not come to home buyers in 2025.
Read MoreParliamentarians 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.
Read MoreHomeownership Dreams Dimming as Policy Gaps and Layoffs Shake Industry
CHBA’s Q3 HMI shows Canada’s housing market faces record-low builder confidence, declining homeownership starts, and rising layoffs, as policy gaps and economic pressures shake the industry.
Read MoreCanadians 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.
Read MoreCanada’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.
Read MoreCHBA 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.
Read MoreGovernment 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.
Read MoreDim outlook for new home construction in Ontario and BC as sentiment in Canada’s new home construction industry stays in near record-low territory
CHBA’s 2025 Q1 Housing Market Index (HMI) is in its eleventh quarter of negative sentiment since dropping from the post-pandemic highs in 2021 and early 2022. While industry sentiment has been low for eleven quarters, builders have typically remained optimistic that future sales would be an improvement over their current sales conditions (though still in negative territory). However, that optimism has dissolved.
Read MoreCHBA welcomes Federal Government removing GST on new construction homes for first-time buyers
Today’s announcement by Prime Minister Mark Carney that the Government of Canada will eliminate the Goods and Services Tax (GST) for first-time homebuyers on homes at or under $1 million is a welcome move to help make housing more affordable for those looking to buy their first home. It will also help spur the creation of more housing supply, which is much needed. CHBA has also argued that while an important permanent move, GST relief is especially significant now as it will help to counter price increases due to tariffs.
Read MoreTariffs negative impact on overall economy will likely slow down housing starts
Today on Parliament Hill during a press conference to release the third CHBA Municipal Benchmarking Study, Canadian Home Builders’ Association (CHBA) CEO Kevin Lee took the opportunity to speak about how the U.S. tariffs and Canada’s countervailing tariffs would likely impact Canada’s residential construction industry.
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