November 4, 2025

Today, the Federal Government released Budget 2025, which includes several measures that will impact the housing sector, including the initiatives overviewed below.

The Government intends to launch a new Build Communities Strong Fund that includes “A Provincial and Territorial Stream that will provide $17.2 billion over 10 years, starting in 2026-27, to support provincial and territorial infrastructure projects and priorities. Funding will support housing-enabling infrastructure (e.g., roads, water/wastewater), health-related infrastructure (e.g., hospitals), and infrastructure at colleges and universities.” However, “To access funds, provinces and territories must agree to cost- match federal funding and to substantially reduce development charges and not levy other taxes that hinder the housing supply.”

In addition, there will be “A Direct Delivery Stream…that will provide $6 billion over 10 years, starting in 2026-27, to support regionally significant projects, large building retrofits, climate adaptation, and community infrastructure. Proponents of regionally significant projects would be required to seek private sector investment, including private investment leveraged through Canada Infrastructure Bank financing, before being eligible for funding under this stream.”

In terms of rental housing, “CMHC will maintain its funding for initiatives that address the housing crisis, including the Apartment Construction Loan Program…,” that will receive the following funding over the next 5 years: 

• $417 Million (2025-26);
• $573 Million (2026-27);
• $515 Million (2027-28);
• $523 Million (2028-29); and
• $29 Million (2029-30).

In the Budget “...the government proposes to amend the National Housing Act to increase CMHC's guarantees in force limit to $1 trillion and to decouple this limit from the corporation's insurance in force limit. It would also introduce amendments to the Protection of Residential Mortgage or Hypothecary Insurance Act to increase the protected limit for mortgage or hypothecary loans insured under that Act to $500 billion.” In addition, the aim to “... increase the Canada Mortgage Bond (CMB) annual issuance limit from $60 billion to $80 billion, starting in 2026 to unlock thousands of new housing units per year. This will increase access to cost-effective mortgage funding for lenders, helping them offer more mortgages and support the construction of new multi-unit housing across Canada.”

The Government also announced the elimination of the Underused Housing Tax (UHT) as of the 2025 calendar year. In addition, they are planning to defer the bare trust reporting requirement (including nominee companies), so the earliest filing would be for the 2027 year.

The Budget reiterated the Government’s commitment to the $13 billion (over 5 years) Build Canada Homes initiative that was announced in September. This includes $1.5 billion for a Canada Rental Protection Fund.

Through the Budget, the Government also announced the 2026-2028 Immigration Levels Plan which will limit permanent resident admission targets to 380,000 per year over the next three years, which is down from 395,000 this year. In addition, “The new plan will also reduce the target for new temporary resident admissions from 673,650 in 2025 to 385,000 in 2026, and 370,000 in 2027 and 2028.”

September 9, 2025

On August 27, UDI made a submission to the Department of Finance with feedback on its Pre-Budget 2025 Consultation. To make real progress on affordability, the Federal Government must enable – not replace – the private sector. By restoring investment flows, modernizing regulations, and aligning all levels of government on supply-focused outcomes, Canada can reverse the housing market’s decline, safeguard jobs, and ensure the delivery of much needed homes.  

UDI supports several recent proposals from the Canadian Homebuilders’ Council and highlights the following priority measures: 

• Support market rate rental housing;
• Unlock private investment in new housing supply;
• Contain costs through building code;
• GST rebate reform; and
• Tie federal funding to municipal reform. 

UDI's corresponding recommendations can be reviewed in the full letter. 

April 23, 2024

On April 16th, the Federal Government tabled its 2024 Budget, including a suite of measures related to housing and development. Most of these were part of the newly released Housing Plan: Solving the Housing Crisis: Canada’s Housing Plan, which was teased in the prior weeks. 

Key initiatives include: 

• Increasing the capital cost allowance rate from 4% to 10% for eligible new purpose-built rental projects beginning construction on or after April 16, 2024, and before January 1, 2031, and that are ready for use by January 1, 2036;
• Increasing the annual limit for Canada Mortgage Bonds from $40 billion to $60 billion, expanding the availability of programs including MLI Select;
• An extra $15 billion in new loans for the Apartment Construction Loan Program (ACLP) (formerly RCFI) and reforming requirements. The ACLP will also have additional dedicated funding available to support specific types of developments, including mixed-use projects, and those using innovative building methods;
• Launching Canada Builds – a partnership-based program modeled on BC Builds;
• A $6 billion infrastructure program, divided across municipalities and provinces/territories, jurisdictions will be able to apply for funding to support critical infrastructure if certain conditions are met;
• Making transit funding conditional on actions to accelerate housing delivery, especially in high-growth areas is something that UDI have advocated for. This measure proposes several specific requirements, similar to those already in-place in B.C.;
• Initiating a Public Lands for Homes Plan to leverage underutilized public lands from multiple levels of government through leasing agreements;
• A $400 million top-up for the Housing Accelerator Fund – this funding is available to municipalities to streamline their processes and remove barriers;
• Several measures to support innovative technologies and approaches through funding and streamlining regulations, including the National Building Code;
• Support for apprenticeship programs and a Skilled Trades Readiness and Awareness program and a commitment to streamline foreign credential recognition in the construction sector;
• Creating a Canadian Renters’ Bill of Rights – in conjunction with provinces and territories, this would include the requirement to disclose previous rents for units; and
• Measures to support home buyers including longer amortization periods for first-time buyers purchasing new construction starting later this year, changes to the Home Buyers’ Plan to permit larger withdrawals and temporarily extending repayment periods. 

The Budget also expanded the exemptions under the excessive interest and financing expenses limitation (EIFEL) rules to include certain interest and financing expenses related to building or acquiring eligible purpose-built rental temporarily. UDI had previously written to the Minister of Finance to request these changes, and while we believe there should be broader exemptions for the real estate sector as a while, this is a positive step. 

Several of the initiatives aim to replicate B.C.’s provincial housing programs, including launching “Canada Builds,” a national “Rental Protection Fund” and requiring the expansion of low-density multi-plex zoning. 

There were also three measures that we will be watching closely. These include potential new reporting requirements for rents, a future tax on vacant residentially zoned land, and potential restrictions on the purchase of single-family homes by corporations. 

Overall, the Budget and Housing Plan represents a shift in the Federal Government’s level of engagement on housing. UDI has been increasing its engagement on Federal issues and will continue to work on behalf of our members on these and other issues.