Budget updates can shift the outlook for anyone planning to buy, renovate, or refinance, and 2025 is no exception. Several programs have wrapped up, a few new measures were introduced, and some long-standing questions have finally been settled.
Here is a straightforward look at what these changes could mean for you and your home plans over the coming year.
The Underused Housing Tax is on its way out
The federal government is cancelling the 1 percent Underused Housing Tax starting with the 2025 tax year. Owners who held property through corporations or trusts will no longer need to file annual UHT returns going forward.
Filings from 2022 through 2024 still need to be completed. If you are unsure about your status or what applies to you, I can help you sort through the details.
Secondary suite loan program cancelled
The federal loan that was expected to support basement suites and laneway units has been withdrawn. For homeowners who still want to add a rental or family suite, other approaches may fit the bill, such as purchase plus improvements or an insured refinance. If a suite is part of your plan, we can look at the financing paths that remain open.
GST rebate for first time buyers confirmed
First time buyers purchasing a newly built home valued up to one million dollars will not pay federal GST. Purchases between one million and one point five million will see a partial rebate. This could mean a meaningful reduction in upfront costs. If you are unsure about your eligibility, I can walk you through what counts as a first time buyer and what documents are typically needed.
New funding for affordable and rental housing
Budget 2025 includes the Build Canada Homes program, which directs funding toward modular and non market housing built on federal land. This is not a program for individual borrowers, but over time it aims to increase supply and help take pressure off high cost regions.
Energy efficiency grants have ended
The Canada Greener Homes Grant has closed, and related loans are no longer accepting new applicants. Before you begin a renovation, it is still worth checking for provincial or local incentives that may still be active. There are also financing options that can support energy upgrades or general improvements if you are planning work on your home.
Stronger fraud protection in the financial system
The federal government is calling on lenders to strengthen security practices and improve consumer protection. If you ever receive a message or request that seems unusual, reach out and I can help confirm whether it is legitimate.
Support for rental housing expansion
Canada Mortgage Bonds now have a higher annual limit of eighty billion dollars to help fund multi unit rental construction. This does not change personal mortgage options, but it should help support rental availability in the years ahead.
Planning Ahead
Budget 2025 brings a mix of program changes, cancelled incentives, and new initiatives. Some may influence how you approach a purchase, refinance, or renovation this year.
If you would like help sorting through how these updates relate to your plans, feel free to get in touch.