Prime Minister Mark Carney says his government will scrap the GST for first-time homebuyers who purchase a home with a sale price at or below $1 million.
Carney promised the measure during his leadership campaign and it also matches a similar promise made by Conservative Leader Pierre Poilievre last fall.
Carney made the announcement in Edmonton just three days before he is widely expected to call a federal election. Global News has confirmed that will happen on Sunday.
Carney says the commitment will save Canadians up to $50,000 on the cost of a home.
He says it also will increase the supply of homes by spurring on new construction.
Housing has become a key issue for Canadians in recent years, particularly younger voters, as population growth outstripped housing construction and prices soared.