Liberal Leadership Candidate to Announce Cost-of-Living Relief Measures
Liberal leadership candidate Chrystia Freeland is set to unveil a major housing affordability policy, pledging to eliminate the Goods and Services Tax (GST) on new homes for first-time buyers if she becomes prime minister, according to sources close to her campaign.
The announcement, expected Tuesday, is part of a broader cost-of-living relief strategy aimed at addressing housing affordability—a growing concern among Canadians.
Freeland’s proposal would apply to homes valued at up to $1.5 million and could save young Canadians as much as $75,000 on their first home purchase.
The initiative is the latest policy commitment in the shortened Liberal leadership race, which concludes on March 9.
Freeland’s proposal is more expansive than a similar housing policy announced by Conservative Leader Pierre Poilievre last October. Poilievre pledged to remove federal sales tax on new homes worth up to $1 million, estimating that buyers could save $40,000 on an $800,000 home.
Meanwhile, fellow Liberal leadership contender Karina Gould has also made housing a central issue in her campaign. Last week, Gould outlined a three-pillar housing plan aimed at:
Reducing or eliminating homelessness
Increasing housing supply
Supporting first-time homebuyers
Gould’s strategy includes reviving and expanding the First-Time Home Buyer Incentive (FTHB), which ended in March 2024. Her plan proposes:
Increasing the percentage of down payment assistance through FTHB from 10% to 50%
Introducing a $2,000 tax credit on the provincial land transfer tax for first-time buyers
Building modular, climate-resilient homes as part of a larger industrial housing strategy
Rising housing prices continue to be a top issue for voters, with affordability pressures hitting young Canadians particularly hard. A November 2024 report from Statistics Canada found that nearly 45% of Canadians were “very concerned” about the rising costs of buying or renting a home.
With affordability emerging as a key battleground issue in the Liberal leadership race, all eyes are on how candidates will position themselves ahead of the March 9 vote.
Freeland’s latest proposal signals her intent to offer bold, direct financial relief to young Canadians struggling to enter the housing market. Whether voters see it as the right solution remains to be seen.