Ottawa’s recently announced budget brings good news for first-time home buyers, with a tax break on the horizon. Under the new plan, first-time home buyers purchasing a home valued under $1.5 million will be exempt from paying the Goods and Services Tax (GST).
While this initiative is welcomed by many, residents in cities like Vancouver express concerns about its impact. With the average price for a detached home in Greater Vancouver surpassing $2 million, some renters feel that the tax break may not be enough to make homeownership more accessible for first-time buyers.
Despite the potential benefits of the tax break, there are worries about the overall affordability of housing. Critics argue that high housing prices, especially in cities like Vancouver, may still pose challenges for aspiring homeowners, even with the GST exemption.
B.C.’s Finance Minister Brenda Bailey lauds the federal government’s efforts, emphasizing the importance of collaboration to address the housing crisis. If approved by parliament, the tax break is set to come into effect next year as part of Ottawa’s broader plan to boost home construction nationwide.