Ontario Construction News staff writer
Prospective homebuyers and residential builders are ending the year facing continued uncertainty as Parliament prepares to rise for its winter break without passing long-promised legislation to provide GST relief on new homes.
Bill C-4, which includes a proposed GST rebate aimed at improving housing affordability, remains unpassed nearly 10 months after the policy was announced. Industry groups say the delay is keeping buyers on the sidelines, worsening Canada’s housing supply shortage and deepening challenges for homebuilders—particularly in Ontario.
“Parliamentarians claim to be concerned about housing affordability, yet when given the opportunity to make the passage of Bill C-4 a priority, they have chosen to get sidestepped with procedural delays for months,” said Kevin Lee, chief executive officer of the Canadian Home Builders’ Association (CHBA). “Announcing this policy in March and still not having it in place ten months later has been a disaster for Canadians hoping to buy a home and for the industry.”
Although the rebate was intended to take effect May 27, 2025, buyers cannot access it until the legislation is formally passed. According to CHBA, the lack of certainty has stalled purchase decisions and delayed renovation projects that could add new housing units, such as secondary suites and additional dwelling units.
If Parliament rises without passing Bill C-4, implementation would likely be pushed to at least February, a delay the association says both consumers and the construction industry can ill afford.
The impact is already being felt across the residential construction sector. CHBA’s Housing Market Index shows that 41 per cent of builders nationally have laid off workers, with layoffs affecting 64 per cent of members in Ontario, where housing market conditions are among the weakest in the country.
“The consequence of this parliamentary delay has been less housing being built, further increasing the housing supply gap,” Lee said, noting that Ontario and British Columbia are experiencing particularly severe shortages.
CHBA is also calling on the federal government to expand the proposed GST relief to all new-home buyers and to renovations that create additional housing units. The association argues that broader eligibility would help deliver a wider range of housing types, including options for seniors looking to downsize and families seeking larger homes—moves that could help free up entry-level housing.
“All parliamentarians must step up, put politics aside, and get this legislation passed immediately,” Lee said. “Canadians cannot afford further delays.”
