On May 27, 2025, the new federal government tabled a motion that will eliminate the GST for first-time home buyers on new homes valued up to $1 million, effective immediately. We are very pleased to see this quick action on a promise made during the federal election campaign.

The removal of the GST will generate about $2 million in annual savings for local Habitats, improving our ability to build, and allowing us to partner with more families to secure affordable homeownership.

Habitats across the country have been pressing for this change for several years. Prior to this change, the homes that Habitat built and sold to families living with low-to-moderate income were subject to the GST, a tax that Habitats often absorbed on behalf of families, and one that has cost us close to $19 million since 2017.

Previously, the federal government had provided 100% GST relief to purpose-built rental apartment buildings, housing for seniors and students, and co-operative housing, but didn't extend the benefit to the purpose-built affordable homeownership homes built by Habitat.

Through continued discussions with parliamentarians, including meetings with 40 Members of Parliament and other decision-makers at our annual lobby day, Habitat on the Hill, Habitat’s persistence drove this issue to the front and centre of housing policy in Canada.

We are gratified to see our advocacy and partnerships across the housing sector influence this new measure that will help bring homeownership within reach for more families.