Conservatives just made a major common sense housing policy announcement to axe the federal sales tax (or GST) on new homes sold under $1 million for first-time homebuyers. This will bring down housing costs making it more affordable and build the homes Canadians need.

For example, this tax cut will save families $40,000, or $2,200 per year in mortgage payments, on a $800,000 house.

The Conservative Leader, Pierre Poilievre also wrote the provinces asking to remove their sales tax from new home sales, which would save even more for homebuyers. If Canada’s premiers agree to match this sales tax cut, Canadian homebuyers will save tens of thousands of dollars more on the cost of a new home, further helping to build even more affordable homes for Canadians.

The state of housing in Canada for young adults today isn’t what it used to be. The House of Commons even declared recently that Canada is in a housing crisis. I hear often from residents in Kelowna-Lake Country who feel disappointed and helpless on the prospect of ever owning a home or affording a mortgage.

It’s absolutely time to address high government costs associated with housing. In many places in BC, various charges from all levels of government add up to more than 30% of the cost of a new home. The GST alone adds $50,000 in costs to a $1 million home. This situation does not serve to build the homes Canadians need.

 

The Conservative proposal to axe the tax to build the homes was created as a result of listening to Canadians and home builders. Here are just a few organizations and policy experts who affirmed the merits and impacts of this plan:

The Senior Director of Policy and Innovation at the Smart Prosperity Institute, stated “[this] proposal to eliminate the GST for newly constructed homes selling for under $1 million is the boldest middle-class housing proposal released to date from any federal political party.”

The Canadian Home Builders’ Association stated this tax cut will “make a big difference if enacted, especially for first-time buyers.”

The Canadian Real Estate Association stated, “this proposed step is a positive move toward lowering building costs, increasing housing supply, and making homeownership more attainable for Canadians.”

The Founder, President & CEO of the Canadian Alliance to End Homelessness, stated this “is smart.”

Habitat for Humanity also said that reducing GST would reduce associated costs.

 

Housing costs have doubled after nine years of this Liberal government, rising faster than any other G7 country. The cost of a mortgage payment and a downpayment have both doubled. In 2015, it took 25 years to pay off a mortgage. It now takes 25 years to save for a downpayment for the average home.

Nine years ago, it took 39% of the median pre-tax household income to cover home ownership costs. It’s now nearly 60%. The situation is even worse in specific cities, especially in BC, where in Vancouver it takes 98.6% of the median pre-tax household income to cover home ownership costs.

The Conservative Leader also commits to a dollar-for-dollar rule where for every new dollar of spending, there has to be a dollar of savings.

The reduction in GST collected by the federal government as part of this plan would be reallocated from spending on current federal government programs that have not increased home building in Canada and hasn’t brought down housing costs.

This is why Conservatives are putting forth common sense solutions to build homes, not bureaucracy, and bring home Canada’s promise of owning a home by putting savings directly into Canadians’ pockets.

 

I'd like to hear from you: Do you have thoughts on the Conservative housing plan to axe the federal sales tax (or GST) on new homes sold for under $1 million?

Please reach out to 250-470-5075 or [email protected] if have any thoughts to share – on this issue or others - or if you need assistance with any federal programs.

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Also, this Remembrance Day, I hope everyone in Kelowna-Lake Country will join me in taking a moment to recognize those who bravely served Canada in times of war, conflict, and peace.

We do this to honour and pay tribute to Canadians who made the ultimate sacrifice defending democracy and human rights around the world.

I hope everyone, who is able to, visits the local Field of Crosses, attends a Remembrance Day Ceremony, and gives a donation for a poppy.

You can view my Remembrance Day video tribute on my social media platforms or my statement in the House of Commons.

Lest we forget.