With the Canadian Federal Election set for 28 April 2025, we’re examining the major parties’ housing announcements. Each party has their own plans for what they would do in the housing realm if elected, so keep an eye out for our articles breaking down their announcements on The Guide.
Conservative Leader Pierre Poilievre announced on 25 March 2025 that if elected, he will eliminate the GST on new home purchases of up to $1.3 million for all buyers. This follows his initial proposal in October 2024 to eliminate the GST on new home purchases of up to $1 million, which preceded Prime Minister Carney’s announcement of the same in 2025 for first-time buyers. Poilievre can only put this promise into practice if the Conservatives are elected in the upcoming federal election.
Poilievre’s policy has a higher limit than Liberal Leader Mark Carney’s, which could cover more potential buyers. The potential savings for Poilievre’s plan would be up to $65,000, versus $50,000 for Carney’s plan.
In BC, the current median home price hovers near $1 million, and in Greater Vancouver it exceeds $1 million. Newly built condos for less than $1 million do exist in Greater Vancouver, but it’s far more difficult to find new townhomes below this threshold, while there are likely no new detached homes available below $1 million in the Metro Vancouver area.
The elimination of GST on new home purchases would make it easier for buyers to enter the market, which could drive up demand. That in turn may stimulate the construction of new homes, but it also could compel many more buyers into the market, which might increase prices. On a similar note, it may lead to a drop in tax revenue, though Poilievre said previously in 2024 he has plans to address this by trimming the Housing Accelerator Fund and Housing Infrastructure Fund.
If you want to buy a newly built home after this announcement, remember that the policy is not yet in place. You can speak to a real estate agent and mortgage advisor for more guidance in the meantime.
Our goal at REW is to provide information that helps Homeseekers stay informed about key housing-related news and information. REW offers no opinion or endorsement of this policy. We’ll be covering other parties' housing policies in future pieces as well.
Author: Zak Khan on March 26, 2025
source: rew.ca
