The Biggest Housing Reforms in Years
On November 4, 2025, the federal government introduced a bold new budget aimed at tackling Canada’s housing crisis. The 2025 federal budget housing measures include significant cost savings for first-time buyers and major investments in new housing supply. Particularly in cities like Toronto, where affordability is a top concern.
Whether you’re buying your first condo in East Toronto or investing in a purpose-built rental, these changes could impact your real estate decisions in a big way.
GST Removed on New Builds Under $1M
One headline change is the elimination of the GST on new homes up to $1 million, with partial relief up to $1.5 million. This translates into a 5% discount on qualifying new builds, a potential savings of up to $50,000.
This measure could open the door for more buyers, especially in East Toronto neighbourhoods where new construction is ramping up.
Big Win for First-Time Homebuyers
If you’re entering the market for the first time, this budget delivers one of the largest cost reductions in years. Lower prices through tax relief, with continued access to the First-Time Home Buyer Incentive, make homeownership achievable in Toronto’s market.
$13B for Affordable Housing and Rental Protection
The creation of Build Canada Homes, a new federal agency, comes with $13 billion in funding to support the construction of affordable housing and protect existing rentals. This is expected to benefit high-demand areas like East Toronto, where rental housing is often scarce.
The focus on preserving existing rental units is just as important as building new ones, helping stabilize rents and reduce turnover pressures for tenants.
Stronger Environment for Real Estate Investors
Real estate investors will also benefit from the 2025 federal budget housing measures. Lower-cost rental construction, supported by increased access to financing, sets the stage for one of the strongest investment environments since before COVID.
Raising the cap on Canada Mortgage Bonds to $80 billion will provide cheaper financing for developers, encouraging more purpose-built rental construction—a crucial need in Toronto.
What This Means for East Toronto Real Estate
In a market like East Toronto, where demand continues to outpace supply, these measures could have a long-term impact on price stability and housing accessibility.
From condo buyers in Scarborough to duplex investors in The Beaches, the 2025 budget signals a turning point in Canada’s housing strategy, with real implications for local buyers, sellers, and landlords.
Final Thoughts
The 2025 federal budget housing measures offer hope for a more accessible and balanced market in Toronto. First-time buyers benefit from lower costs, developers have more financial tools, and investors may find stronger returns on rentals.
