Mortgage Professionals Canada 2025 Budget Update

On November 4th, the Government of Canada tabled its federal budget titled “Canada Strong“. Announced as “Our plan to Build, Protect, and Empower Canada. A plan to spend less to invest more through generational investments that will build Canada’s economy to be the strongest in the G7.”

Starting with this budget, the government will move the federal budget to the fall cycle and adopt a new capital budgeting framework intended to provide certainty for major infrastructure investments.

Federal Budget – Key Housing & Mortgage Measures

Elimination of GST on new homes for first-time buyers under $1 million
$13 billion initial capital for Build Canada Homes to accelerate affordable housing construction and reuse of federal lands
Increasing Canada Mortgage Bond (CMB) annual issuance limit from $60 billion to $80 billion, starting in 2026. The increase will apply exclusively to multi-unit housing. The government will maintain the current pace of its purchases of CMBs, up to $30 billion annually

Advancing Consumer-Driven Banking

Supporting the launch of Real-Time Rail, a payments system that will enable funds to move instantly between accounts and eliminating wait times in 2026
Legislating the ability to direct actions, such as switching accounts or making bill payments, or “write access,” by mid-2027
Proposing legislation to complete the Consumer-Driven Banking Framework, transferring its governance to from the Financial Consumer Agency of Canada (FCAC) to the Bank of Canada
Committing to a legislative amendment to the Personal Information Protection and Electronic Documents Act that will grant Canadians a right to data mobility, promoting competition and reducing risks in the financial services industry by regulating financial data sharing

Promoting Competition in the Financial Sector

Working with banks to develop a voluntary code of conduct to strengthen smaller financial institutions’ access to distribution channels for brokered deposits
Tasking the Financial Consumer Agency of Canada (FCAC) prepare a report on the structure level and transparency of fees charged by Canadian banks

Fighting Fraud

Creating a new Financial Crimes Agency that will be Canada’s lead enforcement agency on complex financial crimes
Developing a whole-of-government National Anti-Fraud Strategy, bringing together financial institutions, technology, and telecommunication companies to develop a cross-sectoral approach to protect Canadians from evolving and highly complex fraud schemes
Strengthening the RCMP’s response to transnational organized crime, financial crimes and money laundering

Mortgage Professionals Canada (MPC) Advocacy Achievements

Thanks to our ongoing engagement, housing affordability, mortgage accessibility, and homeownership remain central priorities for federal decision- makers. Together, we have already secured several significant national policy wins:
- Elimination of GST on newly-built homes for first-time buyers under $1 million
- Return of 30-year amortization for insured mortgages on newly-built homes for first-time buyers
- Increase of the insured mortgage cap to $1.5 million
- Increase of Home Buyers’ Plan RRSP withdrawal limit to $60,000
- Exemption of the stress test on renewals between federally regulated financial institutions
- Consultation on a CRA-enabled income verification tool

Candace Perko, Mortgage Broker