Builders are also rehiring staff and subtrades boosting Ontario’s employment and economy.
The agreement removes the full 13% HST on new homes priced up to $1 million and covers all buyers including investors, if they rent out the unit. A phased-in rebate is available on new homes up to $1.5 million
British Columbians are still waiting for their govt to announce a similar partnership. BC should have been first out of the gate since the province has the highest average home price at $932,711 where the country’s average is $663,828.
The federal/Ontario agreement includes $8.8 billion over 10 years for housing infrastructure projects, including reducing municipal development charges (DCCs) up to 50%.
Municipalities are expected to support DCC reductions, which would be a significant improvement in our region.
Housing sales have declined while local governments continue increasing development charges. Victoria boosted DCCs up to 258% last year and the CRD board recently approved charges up to $9,045 per new home.
A tax relief agreement with Ottawa would kickstart new housing in BC, securing employment and boosting a declining economy.
While a GST rebate is presently available to first-time buyers only, this segment alone is not large enough to breathe new life into housing.
Govt fees, taxes and regulations have put housing out-of-reach for the average BC homebuyer.
In Canada’s highest priced province, homebuyers and industry anxiously await a partnership announcement by Premier Eby and Prime Minister Carney.
This column appears Wednesdays in the Times Colonist.
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