Mortgage Research

With housing affordability and supply under pressure nationwide, the federal government has outlined a range of new strategies aimed at reshaping Canada’s housing landscape. From tax relief and zoning reforms to major investments in infrastructure and construction, these policies are designed to benefit not just first-time buyers, but also current homeowners, developers, and renters.

Here’s a rundown of the key measures that will potentially re-shape Canada’s housing future.

GST Rebate for First-Time Buyers

As of March 20, 2025, the government has eliminated the 5% GST on newly built homes (up to $1M) purchased by first-time buyers.

What this means for you:

• Save up to $37,500 on a $750,000 home
• Applies only to first-time buyers
• No rebate on homes priced over $1 million

This measure came into effect immediately and aims to significantly reduce upfront costs for eligible buyers.

A National Construction Push

A new federal agency, Build Canada Homes, aims to double annual home construction, targeting 500,000 new units. Key features include:

• Fast-tracking modular and prefabricated builds
• Opening underused public lands for residential construction
• $25 billion in financing for builders and developers
• Streamlining federal housing programs

Why this matters? A major increase in supply could ease market pressure and expand buyer options, especially in urban centres. 

Public Lands for Homes Plan

Up to 250,000 homes will be built on surplus federal land by 2031. A $500 million fund will also help buy land from provinces and municipalities to support housing in high-demand areas.

What this means for you:

• More housing starts in urban and growth zones
• Increased land availability to help stabilize prices
• Focus on affordable, first-time–friendly housing

Zoning Reforms & Development Incentives

To encourage more multi-unit housing, the government will:

• Cut municipal development charges by 50% over five years (with federal funding to offset losses)
• Reintroduce the MURB (Multiple Unit Residential Building) tax break to spur rental construction

These changes are expected to speed up development and reduce construction costs.

Infrastructure Spending to Support Growth

To support housing growth, the government is investing:

• $20 billion over 10 years in social infrastructure (affordable housing, childcare, community hubs)
• $6 billion for roads, utilities, and essential services

This ensures that new housing developments are part of complete, livable communities.

Let’s Talk Strategy

A stable, well-supplied housing market helps protect property values and strengthen communities - whether you’re buying, investing, or building wealth through your home equity.

Wondering how these changes affect your plans? Talk to a mortgage expert at The House Team! Call 613-962-1388 or request a free 15-minute appointment with our team HERE - we're here to help!