Liberals’ vow to cut GST for homebuyers may not cut it in Vancouver
Posted March 20, 2025 8:06 pm.
Prime Minister Mark Carney’s promise to scrap the GST for first-time homebuyers who purchase a home with a sale price at or below $1 million might not change much in major markets like Vancouver.
Carney made the announcement Thursday in Edmonton just three days before he is widely expected to call a federal election. He promised the measure during his leadership campaign and it also matches a similar promise made by Conservative Leader Pierre Poilievre last fall.
Brandon Ogmundsen, chief economist for the BC Real Estate Association, says anything helps in the midst of a housing affordability crisis.
He says the change, along with the recent move to allow first time home buyers to qualify for 30-year amortization on mortgages, could help move the needle a bit for first time buyers — if only a little.
“We need to do everything to solve the housing crisis. And this, of course, it doesn’t solve everything on its own, but it’s a really good step, in conjunction with a lot of other policies to to get us on a better path to at least improve in affordability in the long term,” said Ogmundsen.
He acknowledges that the policy won’t change things much in major markets like Vancouver — the most expensive in the country. But he says it’s well worth attracting homebuyers in areas with more affordable downpayments.
“The main hurdle is often the down payment, because prices are very high. And especially when you’re talking about first-time homebuyers. It’s going to be very difficult for those first-time homebuyers to put together a large enough down payment to get into the housing market,” said Ogmundsen.
Anyone who’s been shopping around in the last few years knows that it’s hard to find a home under $1 million at all in the Lower Mainland.
To begin with, GST only applies to new builds or homes that have been significantly renovated.
Data from Greater Vancouver realtors shows that the average price in the region for any home — regardless of age — was sitting at just under $1.2 million last month.
—With files from The Canadian Press
