In a welcome move to improve housing affordability and stimulate the market, the federal government announced last week a new GST rebate for first-time home buyers, effective May 27, 2025. The rebate will remove the GST on newly constructed homes up to $1 million, and reduce it for homes priced between $1 million and $1.5 million, when purchased by qualifying first-time buyers.
Eligible buyers may recover up to $50,000 of GST (or the federal portion of HST), applicable to newly built homes, including those purchased through a builder or as part of a pre-construction agreement—whether on owned or leased land. To qualify, at least one buyer must be a first-time home buyer who intends to use the property as their primary residence and be the first occupant. The rebate applies to agreements signed on or after May 27, 2025, through to 2031.
This policy change is a direct response to the mounting affordability crisis and reflects the outcome of ongoing advocacy by a range of stakeholders across the housing continuum. CHBA, HAVAN’s national association office, has been working with the federal government to shape solutions to support a stronger market.
While this rebate is a solid first step, HAVAN, CHBA BC, and CHBA national continue to recommend further refinements:
- Extend the rebate to all buyers of newly constructed homes, not just first-time buyers. Doing so would help move-up buyers access new housing, freeing up more entry-level homes in the resale market for first-time buyers.
- Apply the rebate retroactively to newly built homes where sales agreements have already been signed but legal possession has not yet occurred—many of which are still under construction.
- Include Accessory Dwelling Units (ADUs) and secondary suites under the rebate, recognizing their role in supporting gentle density, rental supply, and multi-generational living.
A VOICE AT THE NATIONAL LEVEL
Beyond the direct savings for qualifying first-time buyers, the broader impact of this policy cannot be overstated. Housing markets are interconnected. When more first-time buyers can enter the market, the ripple effect reaches every level of the housing ladder—supporting the delivery of new homes, unlocking turnover in existing homes, and bolstering consumer confidence.
This is why having a strong voice at the federal level is critical. National policies—whether related to taxes, financing, or building code—have wide-reaching impacts that touch every region and every homeowner. In this case, a targeted incentive for first-time buyers will help to stimulate demand for new construction, and to advance more projects. In turn, those buyers will vacate rental units or family homes, helping to ease demand pressure across the broader market.
When housing policy supports mobility and access at all stages of life, the system functions more efficiently. First-time buyers gain entry, builders can build with more certainty, and existing homeowners are more empowered to make their next move, whether that’s downsizing, upsizing, or investing in intergenerational housing solutions.
HAVAN will continue to work with CHBA BC and CHBA national to continue its advocacy to refine and extend this policy. But for now, the announcement marks an important milestone—and a reminder that coordinated engagement with government can deliver real results.
PROVINCIAL PRESSURE ON MUNICIPAL DEVELOPMENT
BC Expands Housing Targets to More Municipalities
Meanwhile, back in BC, the provincial government is continuing its push to increase housing supply. Last Thursday, BC announced its fourth wave of Housing Target Orders (HTOs), expanding the list of municipalities required to meet provincially mandated housing growth targets.
The latest municipalities to receive HTOs are Burnaby, Coquitlam, Langley Township, Pitt Meadows, and Richmond. While exact targets are still to be finalized, the province has indicated they will follow its established methodology—aiming for 75% of each community’s assessed housing need. Anticipated targets are:
Burnaby: 17,043 homes
Coquitlam: 10,002 homes
Langley Township: 10,591 homes
Pitt Meadows: 1,141 homes
Richmond: 11,645 homes
These orders are issued under the Housing Supply Act, passed in 2023, which gives the province authority to assign five-year housing targets to municipalities facing the greatest pressure. Targets are informed by Housing Needs Reports and are intended to increase municipal accountability and transparency in housing delivery.
With this latest announcement, 15 Metro Vancouver municipalities are now subject to HTOs. The first three groups included Vancouver, Delta, Surrey, New Westminster, and others. Municipalities must submit regular progress reports. While the targets are not enforceable quotas, the province is closely monitoring results.
Where municipalities have failed to make meaningful progress, the province has not hesitated to intervene. West Vancouver and Oak Bay, for instance, delivered less than 30% of their first-year targets. In response, Housing Minister Ravi Kahlon appointed independent housing advisors to review local barriers and propose bylaw changes. Both municipalities have since been given deadlines to implement the recommended reforms.
Municipal leaders continue to raise concerns, pointing to lagging infrastructure—such as schools, hospitals, and transportation—as barriers to absorbing new growth. Nonetheless, the province has made it clear: slow delivery will no longer be tolerated. With the fourth wave of HTOs now in effect, more communities are under the spotlight—and the provincial government continues to signal it is willing to take direct action when housing supply stalls.
HAVAN continues to work with CHBA BC and CHBA to advocate for all levels of government to work together to address the challenges of the housing industry including zoning restrictions, density limits, and NIMBYism.
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