Home builders in London are asking the federal government to remove GST and HST on new homes, saying it could lower costs for buyers and help get the market moving again.
London Home Builders’ Association CEO Jared Zaifman said right now, the added taxes are making it harder for people to break into the housing market.
“It’s really tough,” Zaifman said. “Those taxes can add a lot onto a price that’s already high.”
On a home around $1 million, he said GST and HST can add roughly $130,000, something he says can put ownership out of reach for some buyers.
The London Home Builders’ Association logo. The association is urging tax relief on new homes to help improve affordability.
He said a lot of people are waiting things out, hoping prices shift or policies change enough to make buying possible.
“If that cost could come down, it could help people qualify for mortgages they might not otherwise get,” he said.
Zaifman said removing the taxes would make a noticeable difference. On a $700,000 home, for example, cutting HST could lower the price by about $85,000.
He added even short-term tax relief could push some buyers to act sooner.
“This could potentially be the best time to buy for quite some time,” he said.
Builders are already starting to see some interest pick up, he added, and lower costs could lead to more construction locally.
The call for federal changes comes as Doug Ford announced expanded provincial HST rebates on new homes, aimed at lowering costs and increasing supply.
Zaifman said that move lines up with what the association has been asking for.
“It’s essentially what we were hoping for,” he said. “It’s going to make a huge difference.”
He said with affordability still a major issue in London, any tax relief could help more people get into a home.
