The Government of Canada's 2025-2026 federal budget marks one of the most significant housing-focused fiscal plans in recent memory. With affordability remaining a top concern for Canadians, the budget introduces several measures designed to boost housing supply and make homeownership more accessible.
Build Canada Homes — A New Crown Corporation
The centrepiece of the budget is Build Canada Homes (BCH), a new Crown corporation capitalized with an initial $13 billion. BCH will act as a delivery engine to accelerate the construction of affordable and purpose-built rental housing across the country. The corporation will support innovative construction methods, fund proposals to scale up non-market housing, and work with provinces and municipalities to cut through red tape.
$50 Billion Local Infrastructure Fund
To address the infrastructure bottleneck that has stalled housing development in many municipalities, the budget creates a $50 billion local infrastructure fund spread over roughly a decade. This fund will support municipalities in upgrading essential public networks — water and sewage systems, roads, public transit, electricity grids, and community facilities — that are prerequisites for new housing developments.
Extended Mortgage Amortizations
First-time homebuyers purchasing new builds (including condos) can now access 30-year insured mortgage amortizations, up from the previous 25-year maximum. This change reduces monthly payments and improves qualification for buyers entering the market. The insured mortgage cap has also been raised to $1.5 million, meaning buyers can purchase homes in that price range with a smaller down payment.
GST Exemption for First-Time Buyers
The budget confirms a GST exemption for first-time buyers of qualifying new homes up to a defined price threshold, with tapered relief above that level. This measure directly reduces the cost of purchasing a new-construction home.
What This Means for GTA Buyers
For buyers in the Greater Toronto Area, these changes are particularly impactful. The combination of 30-year amortizations, a higher insured mortgage cap, and GST relief makes new construction homes in suburban markets like Vaughan, Oakville, and Brampton more accessible than they have been in years.
If you're considering buying in 2026, these federal measures provide a stronger foundation for homeownership. Contact us to discuss how these changes affect your buying power.