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 an overview of the key measures that will potentially re-shape Canada's housing future.
GST Rebate for First-Time Buyers
On March 20, 2025, the government announced it would eliminate the 5% GST on newly built homes (up to $1M) purchased by first-time buyers.
What this means for you:
A $750,000 new home could save you up to $37,500
Applies to first-time buyers only
No rebate on homes priced over $1 million
This measure came into effect immediately with the new government and is expected to significantly reduce upfront costs for eligible buyers.
A National Construction Push
The new Build Canada Homes agency aims to double annual home construction, targeting 500,000 new units. Key features include:
Fast-tracking modular and prefabricated builds
Opening up underused public lands for residential builds
Providing $25B 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 centers.
Public Lands for Homes Plan
Up to 250,000 homes will be built on surplus federal land by 2031. A new $500M fund will also help buy land from provinces and municipalities to support builds in high-demand areas.
What this means for you:
More housing starts in cities and growth areas
Increased land availability may help stabilize prices
Focus will be on affordable and first-time–friendly housing
Zoning Reforms and 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 local revenue losses
Reintroduce the MURB (Multiple Unit Residential Building) tax break to spur rental construction
These measures are designed to speed up development and reduce costs.
Infrastructure spending to support growth
To keep pace with housing demand, the government is investing:
$20B over 10 years for social infrastructure (affordable housing, childcare, community hubs)
$6Bfor roads, utilities, and essential services
This ensures new homes 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 could affect your plans? Let's talk.