On March 12, 2026, the House of Commons passed Bill C-4,  Making Life More Affordable for Canadians Act.   Part of this legislation includes the elimination of  the five per cent federal Goods and Services Tax (GST) on newly built homes priced at $1 million or less for eligible first-time buyers, and reduces it on homes between $1 million and $1.5 million.  Rule highlights of Bill C-4 include:

• Eligible first-time buyers pay no federal GST on homes up to $1 million.
• Partial rebates apply to homes between $1 million and $1.5 million.
• Potential savings reach approximately $50,000 for qualifying buyers.

However, Conservative MPs stated the Bill was very restrictive,  that limiting the GST cut to first-time buyers leaves out the majority of new home purchasers, and thus would have little impact on new home construction.   They called for the GST to be eliminated on all new homes priced under $1.3 million to stimulate housing starts.

Ontario’s housing sector faces declining housing starts, softer new home sales, and growing  job losses.

(With files from:  Canada.ca, March 16, 2026;   and  Ontario Construction News, March 16, 2026)