What’s Changing in Canadian Housing? Key Federal Initiatives Explained

With housing affordability under pressure, the federal government has introduced new measures aimed at boosting supply, reducing costs, and supporting buyers and renters across the country.

Here’s a snapshot of the major changes that could shape the future of Canada’s housing market:

1. GST Rebate for First-Time Buyers
As of March 20, 2025, first-time buyers no longer pay the 5% GST on new homes priced up to $1 million.

• A $750,000 home now saves up to $37,500

• Applies only to first-time buyers

• No rebate if the price exceeds $1M

2. Build Canada Homes Agency
A new agency aims to double annual housing starts to 500,000 units by:

• Fast-tracking modular builds

• Developing public land

• Offering $25B in financing to builders

• Simplifying federal housing programs

3. Public Land Development Plan
Up to 250,000 homes will be built on surplus federal land by 2031. A $500M fund will help acquire more land in high-demand areas.

• Focus on affordability and first-time buyers

• Aims to stabilize land prices and increase availability

4. Zoning and Development Incentives
To encourage multi-unit housing, the government will:

• Cut development charges by 50% (offset by federal funds)

• Reintroduce the MURB tax incentive for rental housing

5. Infrastructure to Support Growth
To create complete, livable communities:

• $20B will go toward affordable housing and community services

• $6B will fund roads, utilities, and essential infrastructure