Canada’s 2025 federal budget is now passed, and while it includes several housing-focused measures, the effects depend on where you are in your homeownership journey. If you are buying in Ottawa, planning a move within Ontario, or preparing for a mortgage renewal, here’s what the budget means for you. I’ll also share how working with me, Josh Tagg, can help you make clear and confident decisions in today’s changing market.
GST Exemption on New Builds for First-Time Buyers
One of the biggest changes is the removal of the GST on newly built homes for first-time buyers. This applies to new homes priced up to one million dollars, with a reduced GST for homes between one million and one and a half million.
For Ottawa buyers, this could open more opportunities in areas where new construction is growing, such as Barrhaven, Kanata, Orleans, and expanding communities across Eastern Ontario. Lower upfront costs mean first-time buyers may need a smaller mortgage, improving long-term affordability and borrowing power.
This change applies only to new builds, not resale homes. If you’re unsure whether a new build or a resale home fits your budget and lifestyle, I can help you compare the costs and match you with a mortgage that aligns with your goals.
Limited Direct Relief for Current Mortgage Owners
For current homeowners facing renewal, the federal budget does not provide broad relief on mortgage payments. There are no new programs that reduce interest costs or require lenders to extend amortizations across the board.
If your mortgage is renewing into a higher rate, having a clear strategy is essential. As a mortgage broker, I can negotiate with multiple lenders, explain your options in plain language, and help you secure a renewal that fits your financial plan. Many Ontario homeowners discover they have more choices than they expected once we explore the full range of lenders.
Housing Supply Measures That May Shape Ontario’s Market
The budget includes large investments aimed at speeding up homebuilding across Canada. This includes support for multi-unit construction, modular housing, and expanded financing options through CMHC and Canada Mortgage Bonds.
In Ottawa and surrounding regions, added supply could help ease competition over the next few years. While these changes won’t take effect overnight, they aim to improve affordability by increasing the number of homes available in both urban and suburban areas.
If you plan to buy in the next couple of years, I can help you prepare so you’re ready when new supply comes online and more options become available.
Impact on Home Values and Market Stability
As more homes are built, home price growth in Ontario may moderate. After several years of rapid increases in many neighbourhoods, this could create a more stable and predictable market.
For current homeowners, this may mean your home equity grows at a steadier pace. For buyers, it can reduce pressure from bidding wars and help with budgeting. Stability is helpful for planning your next move, whether you’re renewing, refinancing, or upsizing.
What This Means for You in Ottawa and Across Ontario
The key takeaway from this year’s federal budget is that the benefits depend on your situation.
First-time buyers considering a new build may see significant savings from the GST exemption. For current homeowners, the biggest influences remain interest rates and lender policies, not the budget itself.
Your mortgage strategy matters more than ever. Whether you’re buying your first home, renewing your mortgage, or preparing for a future move, I can help you understand how the budget affects your next steps and guide you toward the best mortgage options available.
