The council says taxes, fees, and levies already make up 31% of the cost of a new home. For example, a buyer is paying $310,000 on a $1 million home to governments.
“First-time home buyers are being hammered by these fees and excessive add-ons,” said Lyall. “Governments should cut the GST and HST on owner-occupied housing, especially for first-time home buyers who are carrying the burden of accumulated excess taxation and red tape, same as what they did for purpose-built rental buildings. Adding more costs should be stopped. We should also allow RRSP funds to be used for purchasing principal residences by domestic first-time buyers and possibly those who are downsizing.”
The council is also proposing a modernization and digitization of the approvals process to move developments more quickly.
“Modernization is proceeding at a glacial pace. We are deeply lagging in adopting digitization and technology to improve our development approvals process which only delays new residential construction projects,” noted Lyall.
RESCON is also suggesting the government offer financial assistance and tax incentives to encourage companies in building more modular housing manufacturing plants in Canada as well as to adopt new technology and building techniques.