The federal government recently released its long-awaited Budget for 2025. We went through to see how it could affect both homeowners and potential homeowners alike.
The following is a list of programs geared to homeowners, either existing or new, and how they could affect you.
Federal Loans for Secondary Housing Units
The loan program to finance secondary housing units, such as basement apartments and laneway homes, has been cancelled. This program wasn’t a big seller among homeowners; however, some clients found it beneficial. For those wishing to add a basement apartment, there are still financing options available, just not ones backed by government programs.
GST Rebate for First-Time Home Buyers
First-time home buyers making a purchase of a new home up to $1 million will no longer have to pay GST (federal portion of HST). Those purchasing a home between $1 million and $1.5 million will only have to pay a portion of the GST.
Underused Housing Tax Eliminated
The 1% tax charged on underused housing has been eliminated effective 2025. This isn’t retroactive prior to 2025 however, so it is still in effect for 2022 through 2024.
Affordable Housing and Rental Property Funding
The new Build Canada Homes will provide $13 billion for modular-built and affordable housing using federally owned lands. The premise is to increase housing supply, which would hopefully satisfy or at least lower demand and thus decrease overall housing costs.
Energy Efficient Rebates to be Wound Down
The Canada Greener Homes grant is being cancelled along with the associated financing. There are still various provincial and municipal programs available depending on your location.
Rental Housing Support
They are increasing the limit on Canada Mortgage Bonds to $80 billion to help finance purpose-built multi-unit rental properties. Again, this won’t directly affect homeowners, however it should increase housing supply to potentially lower housing costs overall.
Curious which of the above are relevant for you or want to know more about your specific situation? Please reach out and we are happy to review your details for a full analysis!