As Canada heads toward a federal election on April 28, 2025, housing is one of the biggest issues on the table. Political leaders are promising major changes to make homes more affordable, including cutting taxes on new builds. But while politicians debate, the real estate market is already changing in a big way.
If you’re thinking about buying or selling a home in the next year, this guide will break down everything you need to know.
Right now, when you buy a new home in Canada, you pay the Goods and Services Tax (GST), which is 5%. That might not sound like a lot, but on a $900,000 home, that’s $45,000 extra.
During this election, both major parties are proposing to remove GST on new homes to help Canadians save money and make it easier to buy:
Liberal Party (Mark Carney): No GST for first-time buyers on new homes under $1 million.
Conservative Party (Pierre Poilievre): No GST for all buyers on new homes under $1.3 million.
If these changes go through, it could mean huge savings on a new home purchase—but only if you’re ready. If you are looking to potentially purchase a new home this year, we have a large inventory of pre-construction or newly built homes for your consideration.
Even without the election, Canada’s housing market is shifting. Here are the most important updates from March 2025:
Across the country, the number of homes being built has dropped 19% compared to last year.
Condo construction is down 53%.
For the first time ever, 51% of new housing is for rentals.
Single-family homes (like detached houses) are becoming harder to find, especially in Ontario and British Columbia.
What this means: If you want to buy a house and not a condo or rental, you may have fewer options and face more competition in the coming months.
Mortgage activity (people applying for and getting mortgages) is up 110% from last year.
60% of Canadians will need to renew their mortgage in the next 20 months.
Many are seeing their monthly payments go up by 35% or more.
The government is thinking about replacing the current mortgage "stress test" with even stricter rules.
What this means: If you’re renewing soon or planning to buy, you could end up paying a lot more unless you lock in a rate now.
Home sales are down nearly 10% nationally compared to last month and 20% in Ontario.
Prices have dipped too: resale prices dropped 4.6%, and the Home Price Index (HPI) is down 0.8%.
The market is soft, which means there are more homes for sale than buyers looking.
What this means: It’s currently a good time to buy, especially if you're looking to negotiate on price.
More Ontarians are falling behind on mortgage payments.
Credit card and personal loan debt is going unpaid more often.
Consumer insolvencies (when people can't pay their debts) are up 3.8% year-over-year.
Despite this, household net worth actually went up 1.6% at the end of last year.
What this means: While many Canadians are feeling the pinch, some still have the financial flexibility to buy or invest—especially if they act smart.
Get pre-approved for a mortgage as soon as possible before rates go higher.
Watch for opportunities: prices are softer, and fewer buyers means you could get a better deal.
Keep an eye on new tax breaks for new homes—you could save tens of thousands.
Many buyers are actively looking now to beat future rate hikes and lock in GST savings.
With construction slowing, your home may be more in demand if it’s move-in ready.
Don’t wait too long—supply could increase later, and you’ll face more competition.
Whether you're planning to move or just curious about your home's value, now's the perfect time to find out.
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We’ll give you a clear idea of what your home is worth in today’s market—with no pressure and no obligation.
Or, reach out to chat with one of our trusted experts to walk you through buying, selling, or just planning ahead.
With the election on the horizon, tax breaks coming, and the market in motion, this is a rare moment to make a smart move in Canadian real estate. Whether you're buying or selling, acting now could save you money and give you an edge.
Let’s talk through your options, by contacting us today—we’re here to help!