Mortgage Blog

2025 Canada Federal Budget Deep Dive Summary

November 6, 2025 | Posted by: Sean Malachi

2025 Canada Federal Budget

Deep Dive Summary: Housing, Real Estate & Mortgage Impacts

Major Housing & Mortgage Measures

• $13B Build Canada Homes Agency: Accelerates affordable and non-market home construction. Goal: 430,000–480,000 homes/year using modular and advanced construction to reduce costs and emissions.
• GST Elimination for First-Time Buyers: New homes up to $1M see a 5% GST rebate. Makes homeownership more accessible by lowering entry prices.
• Canada Mortgage Bonds (CMB) Expanded: Limit raised to $80B a year, unlocking financing for multi-unit/rental housing and boosting housing supply.
• Rental Housing Push: Record levels of completions. Declining rents (-3.2% YoY) signal improved conditions for renters.
• Infrastructure Support: $51B for development-enabling infrastructure to keep prices lower.
• Indigenous & Rural Funding: $2.8B for Indigenous housing; ongoing rural and northern initiatives.
• Tax/Program Rollbacks: No Secondary Suite Loan Program, underused housing tax not proceeding—eases compliance for owners/investors.

National & Regional Market Dynamics

• National Average Home Price: $676,154 in September 2025 (+1.8% MoM, +1.0% YoY).
• Interest Rate Environment: Bank of Canada at 2.25% (down 2.75 points since mid-2024), which improves affordability.
• Regional Home Price Changes (YoY, Sept 2025):
• Ontario: -6.7%
• British Columbia: -2.7%
• Quebec: +8.1%
• Nova Scotia: +4.6%
• Alberta: -0.4%
• Newfoundland: +10.3%

Average Home Prices by Province (Sept 2025)

National Average Home Price Trend (Jan–Sept 2025)

2025 Federal Budget: 5-Year Investment Breakdown

Regional Annual Home Price Change Heatmap (Sept 2025)

Infographic: Key 2025 Canadian Mortgage Impacts

• Top four points:
• CMB limit raised to $80B/year for rental liquidity.
• GST removed for first-time buyers (new homes up to $1M).
• National average home price: $676,154.
• Bank of Canada rate: 2.25%.

Infographic: Key 2025 Canadian Mortgage Impacts

Advice for Real Estate Investors

• Target multi-unit/rental investments: Federal programs and increased CMB funding make these attractive.
• Watch regional shifts: Consider Atlantic Canada and Quebec for price growth; monitor softening in Ontario and BC for value buys.
• Act on incentives: Use GST relief for new builds, and watch for infrastructure-driven value spikes.
• Prepare for renewals: Budget for rising rates after 2025 and review terms for flexibility.
• Leverage rental market strength: Consider long-term strategies as completions are high and vacancy risk is down.

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