GST relief on new homes could save 1st-time buyers up to $240 on mortgages: report
OTTAWA – A new analysis says first-time Canadian homebuyers could save up to $240 on their monthly mortgage payments through the federal government's proposal to waive the sales tax on new builds.
Desjardins Economics says in a new report that the impact on housing affordability will be 'particularly strong' for buyers in Canada's more expensive markets, like Toronto and Vancouver.
The Liberal government has tabled legislation to eliminate the GST portion from new home sales of up to $1 million for first-time buyers, which works out to as much as $50,000 off the cost of a new build or substantially renovated unit.
For homes sold above $1 million, the GST relief is phased out as the price tag nears $1.5 million.
But Desjardins also cautions that the policy could drive up demand for housing, which in the near-term could push up home prices if not coupled with other efforts to boost supply.
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Parliament has yet to pass the legislation, which the Liberals introduced alongside the government's pledge to cut income taxes starting July 1.
This report by The Canadian Press was first published June 9, 2025.
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Browse here. Rustad's comments echoed sentiments from B.C. Transport Minister Mike Farnworth who expressed concern about procuring ships from a country currently engaged in a tariff war with Canada. Farnworth, however, stopped short of saying he was going to take action against the decision. 'My main concern with B.C. Ferries' decision is the lack of Canadian content in the contract. My hope is that going forward B.C. Ferries will make a greater effort to require Canadian inputs into its new vessels,' said Farnworth, explaining he had shared those concerns with the corporation. 'With respect to China specifically, my concern is focused around the ongoing trade disputes between our nations and the fact China is deliberately attacking sections of the Canadian economy through unwarranted tariffs.' B.C. Premier David Eby has repeatedly criticized the Asian economic giant over allegations of money laundering, election interference and that it's arming Russia in its invasion of Ukraine. A recent trade mission by the premier intentionally skipped China, with B.C. instead choosing to focus on strengthening ties with Japan, South Korea and Malaysia. On Tuesday, B.C. Ferries announced it had signed a deal with Chinese state-owned Weihai Shipyards to build four new vessels between 2026 and 2031 as replacements for its oldest ships. Nicholas Jimenez, the corporation's CEO, has defended the choice by saying that there were no Canadian companies that applied for the project. In September, North Vancouver-based shipbuilder Seaspan said that 'Canadian shipyards and their supply chains cannot compete with low-wage countries that have lower employment standards, lower environmental standards and lower safety standards.' The company has urged the province to follow Quebec in providing tax breaks and forgivable loans and grants to help ensure ferries can be built in B.C. Jimenez also said that China has come to dominate the global shipbuilding industry with 60 per cent of all ships in the world today having been built by the Asian behemoth. 'In the last 10 to 15 years, the technological capabilities and shipbuilding prowess inside that country has grown immeasurably,' Jimenez told reporters Tuesday. 'We consulted heavily with our colleagues in Europe, who have been in the market for more than a decade. I would note even as recently as two months ago, another very large Italian ferry organization just signed a deal for nine vessels with the very same shipyard that we intend to build in.' Jimenez promised there are provisions in the contract that ensure Weihai will not be paid in full until the ships are delivered. Additionally, he said there will be oversight teams on the ground in China during construction to ensure compliance with the contract and address any security concerns. The full contract has yet to be release and B.C. Ferries isn't releasing the amount being paid to the Chinese company, citing the need to protect future bids. Ed Hooper, B.C. Ferries head of fleet renewal, said Tuesday that the corporation took the step of travelling to all the shipyards on its shortlist and that there was a sense of strong worker safety provisions and oversight at Weihai. He did acknowledge, however, that the dominance of China in the industry is deliberate. Neither Jimenez or Hooper were made available Wednesday for further questions. Joy MacPhail, B.C. Ferries board chairwoman and former NDP cabinet minister, was also unavailable. A corporation spokesperson said that they had been having regular briefings and meetings with the provincial government throughout the procurement process and had notified the federal government of their selection of Weihai ahead of time. They also said that all IT networks and vessel systems for the ships will be installed in Canada by local suppliers and that B.C. Ferries had sought the advice of an independent risk consultancy on security measures for the project. Rustad said that while Jimenez might not have concerns about the geopolitical ramifications of the deal, there is no telling when an international incident could occur between Canada and China that might put the delivery of the vessels in jeopardy. 'Obviously there's lots of rhetoric going back and forth between the United States and China, friction with Taiwan,' Rustad told Postmedia. 'Who knows what may happen? Hopefully nothing by 2029 to 2031 which is when these ships are going to start to be constructed and delivered.' Concerns over the contract have reverberated to the federal level with Jeff Kibble, Conservative MP for Cowichan-Malahat-Langford, questioning federal Transport Minister Chrystia Freeland during question period in Ottawa. 'The Liberals are set to hand over $30 million (in federal subsidies) to B.C. Ferries while B.C. Ferries hands over critical jobs, investment and industry to China,' Kibble charged. Freeland responded that she agrees the federal government needs to be supporting local industry and working with allies and trade partners but that the B.C. Ferries' contract wasn't a federal project. Jenny Kwan, NDP MP for Vancouver East, told Postmedia that Ottawa has a role in working with provincial governments to build up the country, including ensuring that domestic companies can compete for large procurement contracts. 'We have to re-examine how that procurement process is undertaken,' said Kwan.
