The 2025 federal budget is here, and yes… it’s full of tax cuts, credits, rule changes and government vocabulary nobody actually speaks. So let’s break it down in real, easy language — and talk about what actually matters for Ontario buyers, sellers, and homeowners.
💰 1. A Small Tax Cut = A Little More in Your Pocket
The lowest tax rate is dropping:
2025: 15% → 14.5%
2026 and after: 14%
🏡 Why this matters:
A tiny bit more take-home pay can help:
→ Boost savings for a down payment
→ Improve mortgage affordability
→ Give homeowners a little breathing room
It’s not life-changing, but in today’s market?
Every little bit helps.
🛠️ 2. Renovation Credits Changing (Deadline: End of 2025)
Right now, certain accessibility or medical home renos can be claimed under two tax credits at once.
That ends January 1, 2026.
🏡 Why this matters:
If you’re renovating for aging parents, accessibility, or multi-generational living:
→ 2025 is your last year to maximize both credits
→ This may influence your reno plans or budget
→ Accessibility upgrades often help resale value too
❤️ 3. New Support for Personal Support Workers (PSWs)
PSWs get a refundable tax credit (up to $1,100) from 2026–2030.
🏡 Why this matters:
Many PSWs in Ontario are first-time buyers or supporting multi-generational homes.
A small tax credit = a little more room to save and plan confidently.
🪨 4. Clean-Tech + Mining Investors Get New Incentives
More minerals qualify for a 30% exploration tax credit.
🏡 Why this matters:
Mostly for investors:
→ If your investment income helps with future home plans, this could be a bonus — but some may face higher taxes under minimum tax rules.
🧾 5. Trust Rules Are Getting Tighter
Loopholes that let people shift property around in trusts to delay taxes are closing.
🏡 Why this matters:
If your family uses a trust for cottages, rentals, or estate planning, talk to your accountant — this could affect long-term real estate decisions.
🚫 6. Underused Housing Tax (UHT) Is Gone
Starting in 2025, the tax on vacant/underused homes owned mostly by non-residents is officially eliminated.
🏡 Why this matters:
→ Less paperwork and confusion
→ More predictability for non-resident condo owners
→ Slightly smoother environment for foreign property investors
Not a huge market changer, but definitely cleaner.
✈️ 7. Luxury Tax Updates
The luxury tax on boats and planes ends after Nov 2025 but luxury vehicles still have it.
🏡 Why this matters:
Not real estate–specific, but higher-income buyers might feel this within their overall financial planning.
👵 8. RRIF Withdrawals: No Change
Retirees were hoping for more flexibility, but minimum withdrawals stay the same.
🏡 Why this matters:
For seniors thinking about downsizing, refinancing, or using home equity — nothing changes for now.
🏭 9. Support for Manufacturing = Possible Local Job Growth
Businesses can now deduct 100% of certain manufacturing building costs until 2030.
🏡 Why this matters:
More investment → more jobs → stronger local housing demand, especially in Ontario’s manufacturing cities.
🧑💻 10. CRA May Auto-File Some Taxes
Possibly starting in 2026 — if CRA already has all your income info and you haven’t filed in 3 years.
🏡 Why this matters:
This helps:
→ Renters saving for a down payment
→ Newcomers
→ Low-income Canadians accessing benefits they’re missing
More financial stability = stronger long-term housing readiness.
📝 11. Bare Trust Filing Delayed
Bare trust reporting now starts in 2026.
🏡 Why this matters:
This includes situations like:
→ Parents added to title to help qualify for a mortgage
→ Property shared with family
→ Informal ownership arrangements
You get one more year before the paperwork begins.
🎯 Final Thoughts (Straight Up)
This budget isn’t dramatic — but it’s steady, simple, and generally positive:
→ A little more money in Canadians’ pockets
→ Fewer headaches for homeowners
→ Some clarity for investors
And small boosts for workers who support our communities
In a high-cost, high-stress market, small changes can still make a real difference.
If you’re thinking about buying, selling, refinancing, renewing, or investing, I’m here to help you plan your next move with confidence.
Just reach out — I’ve got you.
From Loan to Home — Your Trusted Path to Ownership. 🏡