The federal government is proposing to eliminate the 5% GST on newly built homes priced up to $1 million for first-time buyers.
This move could translate into up to $50,000 in purchase price savings and up to $240 in monthly mortgage savings, according to Desjardins Economics.
Currently, GST rebates phase out above $350,000—an outdated threshold given today’s housing prices, especially in cities like Ottawa and Toronto.
The change is expected to make new construction more attractive and increase housing supply, though experts caution it may also drive up demand and prices if supply doesn’t keep pace.
This proposed policy has the potential to significantly boost affordability for many buyers entering the market for the first time.
Read the full article from Canadian Mortgage Trends:
