For many Canadians, finding a place to live has become a daily struggle. Families are searching for more space, seniors hope to downsize, and young professionals are trying to take their first step onto the housing ladder. In high-demand cities like Toronto, Vancouver, and Kitchener-Waterloo, even modest new homes are often out of reach, leaving many people without meaningful options. Housing turnover is slow, and the dream of a home can feel further away every year.
The federal government has announced a new GST housing rebate for first-time buyers of newly built homes, offering a full refund of the 5 per cent federal GST (up to $50,000) on homes priced up to $1 million, gradually decreasing between $1 million and $1.5 million, and disappearing entirely above $1.5 million.
On paper, this sounds like relief, but in practice, it reaches only a small portion of buyers. Many homes in desirable neighbourhoods cost more than $1 million, meaning buyers either receive a partial rebate or none at all. Combined with municipal fees, development charges, and other costs, the rebate offers limited help for the people actively looking for a home today.
Beyond eligibility, the GST itself acts as a “development tax” on new construction. Developers must collect and remit the 5 per cent GST on new homes, which adds to the cost of building and selling housing. This can slow new construction, reduce the number of homes entering the market, and make housing less affordable for everyone. When building is taxed in this way, fewer projects start, which directly limits supply for the people who need homes the most.
Build Urban is calling for a GST rebate that applies to all new homebuyers, adjusts thresholds to reflect real market prices, and indexes them to inflation and regional differences. We also support extending the rebate to under-construction or unsold homes to stimulate immediate housing starts.
This isn’t just about policy—it’s about the future of our communities. If Canadians cannot access housing, it signals a system failing its citizens and jeopardizes the social and economic health of our country. Build Urban will continue advocating for solutions that expand housing supply, support movement through the market, and ensure more Canadians can find a place to call home. With the right adjustments, the GST housing rebate could become a meaningful tool in addressing this crisis.