Touted as a “generational investment plan,” Canada Strong Budget 2025 promises major spending on national infrastructure, defence, domestic competitiveness, and economic independence. But it also signals a stricter era of fiscal discipline, with several programs being cut or retired altogether.

For Canadians trying to navigate homeownership, affordability, and investment opportunities, this budget delivers a mixed package. Here’s Lendworth’s breakdown of what matters most.

🏡 Big Housing Announcements: What’s Changing in 2025

✅ 1. First-Time Buyer GST Relief Reinforced

The government is recommitting to the enhanced GST rebate:

• Full GST rebate for homes up to $1M
• Reduced GST for homes $1M – $1.5M

This helps slightly — but doesn’t move the needle for buyers facing record-high prices and tougher qualifying rules.

✅ 2. Two Housing Programs Eliminated

To simplify administration and reduce costs, two federal programs are now gone:

• ❌ Underused Housing Tax (UHT) — eliminated
• ❌ CMHC Secondary Suite Loan Program — never implemented, now cancelled

This should reduce compliance headaches for investors and homeowners with multiple properties.

✅ 3. Major Change to CMHC Backstop & Guarantee Limits

A big development for lenders, builders, and mortgage investors:

• CMHC guarantee limit increased to $1 trillion
• CMHC’s guarantee authority is now decoupled from insurance limits, allowing more flexibility for:
  • Homeownership financing
  • Multi-unit rental construction

This opens the door to more liquidity in the mortgage market, more construction financing, and greater support for private lenders like Lendworth who serve underserved segments.

✅ 4. $51 Billion “Build Communities Strong Fund”

Spread across 10 years, this massive infrastructure plan includes:

• $17B for provinces/territories to build housing-enabling infrastructure (roads, water, wastewater)
• Funding for hospital infrastructure
• Funding for college & university infrastructure

Combined with other programs, this can incentivize lower development charges, potentially making new housing development more viable — a welcomed move in markets where fees add 10–20%+ to project cost.

✅ 5. Build Canada Homes (BCH) Support Confirmed

The government reaffirmed funding for:

• New innovative homebuilding technology
• Faster approvals and modernized construction methods
• $1B for transitional & supportive housing
• $2.8B+ for the Urban, Rural, Northern & Indigenous Housing Strategy

CREA supports this direction — but warns that affordability and missing middle housing remain unaddressed.

🚧 The Big Gap: Little Support for Today’s Homebuyers

While Budget 2025 focuses heavily on building future supply, it offers very few measures for Canadians trying to buy a home today.

No major updates were provided to:

• Stress test rules
• Insured mortgage qualification
• Amortization flexibility
• Missing middle zoning incentives

This could leave millions of young Canadians locked out.

📉 The Missing Middle Crisis Is Getting Worse

For the first time, Census data shows a steep decline in young homeownership:

• Homeownership rate for ages 30–34 dropped from 59.2% → 52.3% (2011–2021)
• Yet 86% of Canadians aged 18–29 still want to own

The problem? Canada’s “missing middle” — townhomes, semis, duplexes, low-rise units — makes up only 11% of national housing supply.

That leaves:

• Seniors stuck in oversized homes
• Young families stuck in condos
• Developers unable to bridge the gap

CREA continues to advocate aggressively for zoning reform and incentives to unlock medium-density housing nationwide.

📊 Lendworth’s Take: What Homeowners, Buyers & Investors Should Watch

1. More construction financing → More opportunities for private lenders

With CMHC expanding its support mechanisms, the market may see:

• More multi-unit projects
• More demand for bridge financing
• More opportunities for private mortgage investment

This aligns strongly with Lendworth’s focus on equity-based lending, construction financing, and alternative mortgage investments.

2. Reduced compliance burdens for investors

Elimination of the UHT is good news for:

• Multi-property owners
• Foreign-owned Canadian assets
• Estate planning involving secondary properties

Less red tape = fewer administrative costs for everyday Canadians.

3. Affordability still needs urgent action

Without federal measures that support:

• Missing middle fast-tracking
• First-time buyer qualification reforms
• Incentives for downsizing
• Broader mortgage flexibility

The pathway to ownership remains steep — especially in the GTA, where Lendworth operates heavily.

⚠️ Minority Government = Uncertain Implementation Timeline

The Budget Implementation Act still must pass — and with a minority government, nothing is guaranteed. Opposition support is far from certain.

Expect debate, amendments, and delays in the weeks ahead.

✅ Final Word from Lendworth

Budget 2025 signals a major shift toward long-term structural solutions — but doesn’t fully address the immediate affordability crisis facing Canadian families today.

As policymakers debate, Lendworth continues doing what we do best:

✅ Fast, common-sense mortgage approvals

✅ Equity-based solutions for homeowners & investors

✅ Flexible lending when banks say “no”

✅ Cross-border financing opportunities

✅ Supporting the missing middle with real-world capital

Whether you're buying, refinancing, investing, or building — Lendworth is here to help Canadians unlock better financial outcomes in 2025 and beyond.