CONSERVATIVE Leader Pierre Poilievre on Thursday announced that on top of axing the sales tax on new homes, a Conservative government will incentivize municipalities to cut building taxes, for a total savings of $100,000 on an average home in Canada’s big cities.
For every dollar of relief a municipality offers in development charges, a Conservative government will reimburse 50%, up to a maximum of $50,000 in savings for new homebuyers.
Poilievre noted that he had already announced his plan to eliminate the sales tax on new homes under $1.3 million, which will save homebuyers up to $65,000. Combining the two policies will lower the cost of a new home by up to $115,000. For an average home in the GTA or Vancouver, the savings will be approximately $100,000.
Conservatives will also require cities to publicly disclose their development charges and explain how the federal reimbursement will be used so Canadians can hold municipalities accountable when they build bureaucracy instead of homes.
“After the ‘Lost Liberal Decade’ that saw housing costs double, it’s time for a new Conservative government that will provide affordable homes for Canadians,” said Poilievre. “The Liberals have broken the promise that hard work buys an affordable home in a safe neighbourhood. Conservatives will restore it by building more, taxing less, and lowering costs for homebuyers to save $100,000 on a new home.”
Conservatives noted that taxes and development charges are now more than 30% of new home costs in Ontario and British Columbia. In Toronto, development charges skyrocketed from under $30,000 to nearly $140,000 during the Lost Liberal Decade, and across Canada, they’ve increased by $27,000 in just two years. These government charges are passed on to homebuyers, turning the dream of homeownership into a nightmare for everyday workers and young Canadians.
The Conservatives said that instead of standing up to municipal gatekeepers who jacked up development charges to fund bureaucracy, Liberals rewarded them. After the Liberals gave the City of Toronto $471 million, the city increased charges 42%, leading to a 39% drop in housing starts. Ottawa and Victoria also raised taxes after receiving Liberal funding. In Victoria, housing starts fell by 55% even as development charges went up by 258%.
The Conservatives said that under the Liberals housing costs in Canada doubled, rising faster than in any other G7 country. It now takes longer to save for a down payment than it does to pay off a mortgage. And 80% of Canadians now believe homeownership is only possible for the rich.
