Federal Budget 2025: What Canadian Homebuyers & Homeowners Need to Know

12 minutes ago

3 min read

Canadian Parliament in Ottawa, the centre of Budget 2025 decisions impacting homebuyers and homeowners across the country.

Federal budgets are packed with charts, acronyms, and bold promises — but what really matters if you're trying to buy a home, renew a mortgage, or invest in real estate in Canada?

We combed through Budget 2025 so you don’t have to. Here’s what everyday Canadians — especially homeowners and aspiring buyers — actually need to know.

Bottom line: This budget focuses on helping first-time buyers access new homes, simplifying tax rules, and slowly building more supply. Helpful steps — not overnight fixes.

1. Proposed GST Relief on New Homes for First-Time Buyers

What’s proposed: Eliminate the 5% federal GST on new homes up to $1,000,000 for eligible first-time buyers, with a gradual phase-out between $1M and $1.5M.

Potential savings example: A $950,000 new home could mean up to ~$47,500 in federal GST savings.

Why this matters: This makes new construction much more attractive vs resale — especially in places like the GTA, Vancouver suburbs, and Calgary where many homes fall just below $1M.

Important note: This is proposed legislation, not yet in full effect. Eligibility rules, timelines, and provincial harmonization still to come. Always confirm before firming up a purchase.

2. Underused Housing Tax (UHT) Repeal

What’s proposed: Repeal the UHT starting in 2025, ending annual filings for many non-resident owners and trustees.

Why this matters: Simplifies compliance for affected owners — especially newcomers with complex ownership structures.

Important note: Past years (2022–2024) still require filing and penalties still apply. Check with your tax advisor if unsure.

3. Personal Tax Adjustments

Some tax changes are designed to slightly increase net take-home income — particularly for middle-income Canadians.

Why this matters for mortgages: More net income = marginally stronger debt-service ratios = potentially easier qualification or renewal flexibility.

Not massive — but helpful.

4. Continued Focus on Housing Supply

The budget re-emphasizes housing construction, including:

More financing support for large rental projects
Support for modular + factory-built homes
Partnerships with municipalities and non-profits
Programs to convert federal lands to housing

Why this matters: This isn’t a “prices drop tomorrow” plan — but it helps address supply shortages over time, which supports long-term affordability and rental availability.

Other Budget Measures That Matter

Not headline-grabbing — but still impactful for real-world buyers, sellers, and renters:

Skilled trades & newcomer credential support

Funding to help internationally trained workers get certified faster in housing-related trades.

Why it matters: More skilled builders = faster construction capacity over time.

Infrastructure that unlocks housing

Funding streams tied to municipal infrastructure (transit, servicing, utilities) to support more buildable land.

Why it matters: Homes can only be built where infrastructure exists. This supports suburban & secondary-market growth — especially in the GTA and Alberta.

Reality check

These are long-term levers, not immediate affordability fixes.

So What Does This Mean for You?

If you are…	What to focus on
First-time buyer	New-build opportunities may open up — watch GST details + pairing with FHSA + HBP incentives
Renewing in 2025-26	Slight tax bump helps qualification. Start renewal planning 6–12 months early
Investor / second property owner	UHT repeal simplifies holding structure — still ensure past compliance
Move-up buyer	New-build incentives may make upgrading more compelling if you plan to stay 5+ years

⚠️ Disclaimers

Several measures are proposed and require legislation
GST rebate rules and provincial alignment pending
Actual mortgage qualification varies by lender & borrower profile
Tax implications depend on individual circumstances

This blog is for general education — always consult a mortgage professional & tax advisor for personalized advice.

The Swivel Take

This budget isn’t a silver bullet — but it’s directionally positive:

✨ More support for first-time buyers✨ Simplified tax environment for some property owners✨ Strong push to increase housing supply long-term

If you're planning a purchase, renewal, or refinance, this is a smart moment to get educated and position yourself early — especially around new-build opportunities and renewal timing.