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The 2025 federal budget introduced measures aimed at housing affordability, tax fairness and targeted support for first‑time buyers. While many changes focus on supply and long‑term policy, several provisions affect mortgage access, closing costs and investor behaviour, all of which influence YOU – homeowners of Calgary.
What Changed?
More support for first‑time buyers (expanded credits/programs) and incentives for purpose‑built rental/affordable housing.
Elimination of GST for first-time home buyers on NEW homes up to $1 million
Reducing GST for first-time home buyers on NEW homes between $1–1.5 million
Significant focus on increasing multi-unit homes, providing additional funding through mortgage loan insurance and securitization
Government’s “Build Canada Homes” focused on non-market housing, building co-op housing
Stricter reporting/compliance for rental and short‑term rental income; some limits on deductions for unlicensed short‑term rentals.
No direct mortgage‑rate cuts — borrowing costs still driven by Bank of Canada and lender pricing.
Impact on Buyers
First‑time buyers: easier entry if you qualify for federal programs – check income limits and timing.
Investors: reduced borrowing power as lenders tighten rental‑income treatment; expect higher down payments and stricter underwriting.
Overall: mortgage rates unchanged by the budget – affordability still depends on market rates.
Impact on Sellers
Investor listings: smaller buyer pool and more lender scrutiny — longer marketing times possible.
Entry‑level sellers: increased demand possible where first‑time buyer supports apply.
More scrutiny on documentation: sellers should provide clear rental documentation and highlight compliance for short‑term rentals.
Calgary Specifics
Budget incentives likely to spur rental construction locally over 18–36 months, helping long‑term supply.
First‑time buyer programs may be especially effective in Calgary’s relatively affordable market.
Local investor market must adapt to tighter reporting; borrowing remains rate‑sensitive.
Bottomline…
The 2025 federal budget adds useful supports for first‑time buyers and boosts incentives for rental and affordable housing – both positive for longer‑term housing health in Calgary. However, these moves won’t immediately change mortgage rates or eliminate affordability pressures. Additionally, a material amount of funding has been directed to government agencies to build non-market housing which impacts those at most risk.
Overall, there isn’t much here. Governments issue budgets term after term, and sure there may be some impactful changes, but this is largely geared towards first-time buyers and those who are looking for non-market housing.
Buyers and sellers should focus on preparedness: clean documentation, early conversations with mortgage brokers, and realistic pricing and timelines tied to Calgary’s market fundamentals – reach out and schedule a call with me today for a consultation on how best to prepare!
