Prime Minister Mark Carney has announced that his government will eliminate the Goods and Services Tax (GST) for first-time homebuyers to address Canada’s housing crisis.

“Our government is laser-focused on lowering costs for Canadians and making homeownership a reality,” Carney said in a press release on Thursday.

The tax cut applies to homes at or under $1 million and is said to save Canadians up to $50,000.

“By eliminating the GST, Canadians will face lower upfront housing costs and keep more money in their pocket,” the press release reads. “Eliminating the GST will also have a dynamic effect on increasing supply – spurring the construction of new homes across the country.”

Despite this promise, Carney can only make it a reality if his government is elected in the next federal election, which is rumoured to be called as soon as Sunday, according to a source.

In October of last year, Conservative Leader Pierre Poilievre made the same pledge if his party wins the next federal election.

“AXE THE SALES TAX ON HOMES. You will pay no GST on new homes of under $1 million, saving up to $50,000,” he wrote in a post on X at the time.