Cut the GST for first-time homebuyers on homes up to $1 million. • YouBetcha

Current Status

Status: Not Started The government has made no concrete progress on implementing the promised GST cuts for first-time homebuyers.

Background

Canada’s housing crisis has been a pressing issue for years, with skyrocketing prices locking many young people and families out of the market. In response, Prime Minister Mark Carney’s government pledged to cut the Goods and Services Tax (GST) for first-time homebuyers on homes valued up to $1 million, alongside a partial reduction for homes between $1 million and $1.5 million. This promise, announced as a cornerstone of their housing affordability plan, aimed to reduce upfront costs by as much as $50,000 per purchase. Fulfilling this commitment would require legislative amendments to the Excise Tax Act and clear regulatory guidelines to define eligibility and implementation. [1]

Evidence

Since the current government under Prime Minister Mark Carney took office, the promise to cut the GST for first-time homebuyers has been repeatedly highlighted in public statements. On March 20, 2025, Carney announced the intention to eliminate the GST on homes under $1 million for first-time buyers, framing it as a measure to save Canadians up to $50,000 and boost homeownership among younger generations. The announcement also included a commitment to lower the GST on homes valued between $1 million and $1.5 million to address high-cost markets. [1]

This pledge was reiterated in subsequent government communications. A document from Housing, Infrastructure and Communities Canada, dated in 2025, referenced the plan to remove the GST for homes under $1 million as part of broader efforts to address the housing supply gap. [2] Additionally, on October 10, 2025, Carney’s office issued a news release on broader cost-lowering measures, though it did not specifically mention progress on the GST cut for homebuyers. [8] Other releases, such as one on January 26, 2026, focused on unrelated affordability measures like grocery costs, with no update on the housing tax policy. [3]

Despite these public statements, no tangible action has been taken by the current government to enact this policy. Legislative records available up to March 10, 2026, show no amendments to the Excise Tax Act or related regulations that would implement the GST cuts for first-time homebuyers. Bills such as C-4, titled the "Making Life More Affordable for Canadians Act," include amendments to the Excise Tax Act, but none pertain to housing or GST exemptions for home purchases. [5] Similarly, recent regulations like the Real Property (GST/HST) Regulations, registered in June 2024, do not address exemptions for first-time buyers. [7] Older legislation, such as the Sales Tax Amendments Act of 2007, is unrelated to the current promise and predates this government. [4]

In short, while the government has consistently signaled its intent through announcements, there is no evidence of concrete steps—such as tabling legislation, issuing draft regulations, or establishing implementation frameworks—toward fulfilling this promise as of the latest available information.

Assessment

The government’s commitment to cut the GST for first-time homebuyers remains unfulfilled, with no substantive progress to report. Despite repeated announcements from Prime Minister Carney and references in housing policy documents, the absence of legislative or regulatory action means this promise has not moved beyond rhetoric. Public statements alone do not constitute progress, and without a bill introduced in Parliament or a clear timeline for implementation, the policy exists only as an aspiration.

This stagnation is particularly striking given the urgency of Canada’s housing crisis, which the government itself has acknowledged as a priority. First-time buyers, especially young Canadians and families, continue to face significant financial barriers to homeownership, and the promised tax relief could have provided immediate support. Yet, as of March 10, 2026, the government has not delivered the necessary framework to make this relief a reality.

Until concrete steps are taken—whether through legislation or binding policy measures—the pledge to reduce GST on homes for first-time buyers stands as a missed opportunity. The government must act swiftly if it intends to honor this commitment and address the affordability challenges facing so many Canadians.

Current Status

Background

Evidence

Assessment

Sources