Latest news with #GSTrebate
Globe and Mail
13-06-2025
- Business
- Globe and Mail
The week's best variable and fixed mortgage rates
The last couple weeks have been a bit deflating for anyone hoping for decreasing mortgage rates. Market expectations of Bank of Canada rate cuts have been waning, the central bank chose to hold rates last month and increasing bond yields mean slightly higher fixed rates could be on their way. Here's a bit of good news for any first-time homebuyers who are looking at new builds: A proposed rebate on GST for new home purchases could lower your mortgage costs. The Parliamentary Budget Officer – which provides independent financial analyses of federal government policy proposals – said the Liberals' plan to rebate some or all GST charges for first-time homebuyers purchasing new construction homes below $1.5 million will save an average of roughly $27,000 for eligible buyers. The impact will be limited, as the PBO thinks less than 5 per cent of all new construction sales will be from people who qualify for the program over the next six years. But if you are a first-time homebuyer in the market for a new build, you could save a maximum of $50,000 on a $1-million home as a result of the policy, which has only begun working its way through Parliament. A study by Desjardins found that the maximum rebate could save you roughly $240 in mortgage payments per month. Mortgage rates are sourced by For a comprehensive list of today's mortgage rates for each term/type, visit is a mortgage-rate comparison marketplace and mortgage brokerage. It helps millions of Canadians compare and obtain the best mortgage rates, credit cards, insurance, deposits and loan products. Rates shown are the lowest available for each term/type and category (insured versus uninsured) as of market close on June 12.
Globe and Mail
11-06-2025
- Business
- Globe and Mail
Proposed GST rebate for some first-time homebuyers could reach $27,000, PBO says
The federal government's proposed GST rebate for first-time homebuyers will provide an average subsidy of roughly $27,000 to more than 71,000 buyers, an analysis from the Parliamentary Budget Officer says. The government is proposing to cut its 5-per-cent GST entirely for first-time buyers that are purchasing a new or substantially renovated home valued at $1-million or less, and to partially cut the GST for new homes valued between $1-million and $1.5-million. The projections were made for the life of the program, which is expected to start in 2025 and end in 2031. The PBO – which provides independent and non-partisan financial analysis of proposed bills – projected that 4.8 per cent of housing completions would be purchased by buyers benefitting from this rebate. A calculation by Desjardins this week found that a $50,000 GST subsidy on a $1-million home could save a homebuyer up to $240 a month in mortgage payments. The best time to make a lump-sum mortgage payment, according to the experts The federal government's new proposed GST rebate comes as the original GST rebate for new housing builds largely falls out of relevance. The original rules provide a 36-per-cent rebate on GST for new construction for any buyer – not just first-time buyers – on homes valued up to $350,000. Smaller rebates are available for homes valued up to $450,000. The value for this rebate has changed by only a small amount since it was introduced in the 1980s, and as a result numbers from the PBO show that only 4 per cent of housing completions in the largest 17 census metropolitan areas were eligible for the full 36-per-cent rebate in 2024.
CTV News
11-06-2025
- Business
- CTV News
Ottawa's GST rebate on new homes would save typical 1st-time buyer $27K: PBO
Houses for sale in a new subdivision in Airdrie, Alta., on Friday, Jan. 28, 2022. THE CANADIAN PRESS/Jeff McIntosh OTTAWA — The parliamentary budget officer says Ottawa's plan to slash the sales tax on housing would save an eligible first-time homebuyer an average of roughly $27,000 off the price of a newly built home. The federal government's fiscal watchdog predicts in a new analysis that a little over 71,000 new builds will quality for GST relief over the lifetime of the program. The proposal would see the federal portion of the sales tax eliminated on a new home worth up to $1 million if it's bought by a qualifying first-time homebuyer. The GST rebate would be phased down as the price of the home approaches $1.5 million. The PBO forecasts the program will cost $1.9 billion over six years, while the federal government has pegged the price tag closer to $3.9 billion. The GST rebate, which is not yet law, was included in the Liberals' spring election platform as a way to help Canadians break into the housing market. This report by The Canadian Press was first published June 11, 2025. Craig Lord, The Canadian Press
CTV News
11-06-2025
- Business
- CTV News
Ottawa's GST rebate on new homes would save typical 1st-time buyer $27K: PBO
Houses for sale in a new subdivision in Airdrie, Alta., on Friday, Jan. 28, 2022. THE CANADIAN PRESS/Jeff McIntosh OTTAWA — The parliamentary budget officer says Ottawa's plan to slash the sales tax on housing would save an eligible first-time homebuyer an average of roughly $27,000 off the price of a newly built home. The federal government's fiscal watchdog predicts in a new analysis that a little over 71,000 new builds will quality for GST relief over the lifetime of the program. The proposal would see the federal portion of the sales tax eliminated on a new home worth up to $1 million if it's bought by a qualifying first-time homebuyer. The GST rebate would be phased down as the price of the home approaches $1.5 million. The PBO forecasts the program will cost $1.9 billion over six years, while the federal government has pegged the price tag closer to $3.9 billion. The GST rebate, which is not yet law, was included in the Liberals' spring election platform as a way to help Canadians break into the housing market. This report by The Canadian Press was first published June 11, 2025. Craig Lord, The Canadian Press
National Post
04-06-2025
- Business
- National Post
Extend GST housing rebate to seniors who want to downsize, report recommends
OTTAWA — The federal government's GST rebate on new homes should be extended to seniors who want to downsize, a new report says, to help boost the supply and cut the price of family homes. Article content The report, released Tuesday by the Ottawa-based Missing Middle Initiative, says that Canada's housing crisis is being partly fuelled by market bottlenecks preventing seniors from downsizing. Article content Article content Article content The document says that Canada's housing supply problems include a lack of smaller homes with access to seniors' preferred facilities and services, which creates disincentives for empty nesters to downsize. That leaves many seniors with homes that are larger than they need, while further restricting the supply of family homes and raising prices. Article content Article content This under-appreciated piece of Canada's housing crisis is exacerbated by high transaction costs, such as the GST and land-transfer taxes, that create further disincentives for seniors to downsize, the report adds. Article content Eliminating these transaction costs would help spur more downsizing, the report says. 'Not only would this help increase the supply of seniors' friendly housing (but) would also free up larger, child-friendly homes for the next generation of families.' Article content Paul Smetanin, the president of the Canadian Centre for Economic Analysis, said he agrees with the report's conclusions and that Canada's current housing problems were completely predictable and the product of a series of government policy and municipal planning failures. Smetanin said his company estimates that there are 4.4 million empty rooms in Ontario alone, in part because of the empty nesters who can't downsize. Article content Article content Those empty rooms are the equivalent to what would normally take more than 20 years to build, he said. 'It really burns my chops.' Article content Article content Canada's housing crisis has been a high-profile and far-reaching problem in recent years. As the population has increased, particularly in urban areas, demand for both home purchases and rentals has soared, leaving many Canadians under-housed or even homeless. Article content The Missing Middle Initiative report also found that homeownership rates are dropping for those under the age of 40 as they are being priced out of many markets. Many young families are also facing a 'second-time homebuyers' barrier in that they own a small home, often a one-bedroom residence, but they have been priced out of transitioning to something that meets their growing family's needs.
