The Missing Middle with Mike Moffatt and Sabrina Maddeaux Canada’s GST Rebate is Based On 1991 Home Prices-WTF!?!
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Jun 25, 2025 The discussion digs into the outdated GST rebate system and its disconnect from today's soaring home prices. Homebuyers face challenges as rebates have failed to keep up with inflation. There's a fresh look at potential reforms, especially incentives for first-time buyers and seniors looking to downsize. The podcast explores proposed government actions in response to declining housing starts and highlights the importance of collaboration to enhance housing affordability. Will these adjustments truly benefit the market? Tune in to find out!
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No New Homes Under $450k
- Mike Moffatt asked Sabrina Maddeaux to find him a newly built home in the GTA priced under $450,000.
- Sabrina confirmed such a home does not exist, making the government's definition of luxury homes outdated.
GST Rebate Cap Frozen Since 1991
- The original GST rebate capped new home prices for rebates at $350,000 to $450,000 set in 1991.
- Nearly all homes qualified then, but today, very few do due to price inflation.
Inflation Killed GST Rebate Value
- The GST rebate thresholds have never been updated for inflation since their introduction.
- This causes the rebate to be effectively useless as new home prices have massively outpaced the limits.