Image Credit: Kent Simmonds / CFJC Today

By Dylana Kneeshaw

HOUSING MARKET

Kamloops real estate market could see activity boost from federal first-time homebuyers’ GST exemption

May 6, 2025 | 4:56 PM

KAMLOOPS — The federal government’s plan to remove the GST on a home at or under a $1 million price tag could save buyers around $50,000 — but only if you’re a first-time homebuyer.

The pledge was made by Prime Minister Mark Carney in March of this year, heading into the federal election campaign. A similar GST exemption policy was mirrored in the Conservative platform, covering properties up to $1.3 million for all homebuyers. The Liberals’ plan was capped at $1 million and is only for first-time homebuyers purchasing a new or significantly renovated home.

Brendon Ogmundson is the chief economist for the BC Real Estate Association and says the policy won’t solve the housing affordability problem faced by many Canadians, but it is a good start.

“My first thought is that first-time homebuyers aren’t generally in the market for new homes so by restricting it to only first-time homebuyers, it somewhat minimizes the potential impact. I’d like to see that applied to all buyers,” he notes.

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Ogmundson points out that the removal of the GST for first-time buyers, in combination with being able to qualify for 30-year amortization rates on mortgages, could make home ownership feasible for many people.

In larger cities, the $1-million limit to the GST exemption likely won’t acquire a family-sized home. However, Ogmundson says the policy price cap could be a way for someone to get into owning a home in Kamloops and other cities in BC’s Interior, where benchmark pricing is considerably lower.

No GST, combined with a push to build thousands of new homes, could result in a more affordable market but it could take years to get there.

“Obviously, there’s huge pressures on the existing housing stock. We need to build a lot more. It’s doubtful we can double housing starts in the next decade,” adds Ogmundson. “But certainly, these types of policies and a lot of the other issues that they’re pushing certainly will help us at least try to get there.”