Budget 2025 introduces a number of changes that could shape how Canadians approach buying, refinancing, or renovating in the coming months. Some programs are ending, others are shifting, and a few adjustments may help ease upfront costs for certain buyers.
Here is a clear breakdown of the updates that matter most for homeowners and anyone preparing for a move or renovation in 2025.
Underused Housing Tax coming to an end
The federal Underused Housing Tax will be phased out beginning with the 2025 tax year.
Individuals who own property through corporations or trusts will no longer need to file annual UHT returns after this year.
If you owned a property that required filing during 2022, 2023, or 2024, those returns still need to be completed. If you are unsure whether anything is outstanding, I can help you review what is required.
Secondary suite loan program withdrawn
The previously announced federal loan program for basement suites and small secondary units has been cancelled.
Homeowners who still want to create a suite can look at other financing paths that may support the work, including purchase plus improvements or certain refinance options. If you want to explore which route aligns with your property and budget, I can walk you through it.
GST relief for first time buyers of new homes
First time buyers purchasing newly built homes priced at one million dollars or less will no longer pay federal GST. Homes priced between one million and one point five million will receive a partial rebate.
This change offers meaningful savings, especially in markets where new construction is a major part of available inventory. If you want help confirming whether you qualify as a first time buyer, I can outline the rules and documentation you may need.
Increased support for rental and affordable housing
Budget 2025 includes new funding for modular-built housing and non market developments on federal land. While not a direct consumer program, the intention is to expand supply and ease long-term pressure in areas where demand is high.
Energy upgrade grants have closed
The Canada Greener Homes Grant and its related loan program are no longer accepting new applications.
Before starting any renovation, check local or provincial incentives that may still be active. There are still financing options that can help cover energy improvements or general home upgrades if you are planning work this year.
Stronger protections against financial fraud
The government has directed financial institutions to increase consumer protections and improve account security. If you receive a message that feels unusual or unclear, you are welcome to reach out before taking action. A quick review can help prevent issues.
Higher limits for Canada Mortgage Bonds
The annual cap on Canada Mortgage Bonds has increased to eighty billion dollars. This supports the financing of multi unit rental projects and is intended to help stabilize rental availability over time.
Looking ahead
Budget 2025 brings a mix of opportunities and adjustments that may influence your financing plans. Whether you are preparing to buy, renovate, or refinance, these updates may affect your timing or the options available to you.