09 Apr Pre-Election Housing Package: Promises, Policies, and What It Means for You

With the federal election approaching on April 28, 2025, housing affordability has become the central issue for both voters and policymakers. In recent weeks, government leaders have signaled a comprehensive pre-election housing package that includes a mix of tax relief, funding programs, and regulatory changes aimed at making homes more accessible—particularly for first-time buyers and middle-income families.

For residents of Abbotsford, Surrey, Langley, and other nearby communities in British Columbia’s Fraser Valley, these proposed changes could reshape not only the cost of buying a home, but also how homes are built, financed, and taxed in the years to come.

This blog breaks down what’s been proposed, what’s likely to come next, and how homebuyers and homeowners can prepare.

Why the Housing Package Matters Now

Over the past several years, the gap between income growth and home prices has widened across much of Canada. In markets like the Fraser Valley, the average price of a new townhome or detached house has moved beyond the reach of many first-time buyers, even with stable income and savings.

At the same time:

• National housing supply remains well below demand.
• Construction has slowed due to material and labour shortages.
• Rising interest rates in 2023–2024 pushed monthly payments out of reach for many.

Now, with interest rates easing and affordability dominating headlines, the federal government is under pressure to act decisively—and quickly.

What’s Already Been Promised

1. GST Exemption for First-Time Buyers on New Homes Under $1 Million

Already confirmed as part of the government’s platform, this proposal would eliminate the 5% GST for first-time buyers purchasing newly constructed homes priced below $1 million.

For buyers in Abbotsford, Surrey, and Langley—where new homes often fall between $650,000 and $950,000—this change could offer savings of up to $50,000.

This policy is designed to:

• Reduce the upfront tax burden on entry-level homes
• Encourage homebuilders to produce inventory that fits under the $1M threshold
• Shift buyer focus toward new builds and away from overpriced resale listings

While this initiative is not yet in effect, it is expected to be implemented swiftly following the election, assuming the current leadership remains in place.

2. More Funding for Purpose-Built Rental Housing

Another confirmed element of the package includes increased federal investment in purpose-built rental projects, especially in high-growth urban and suburban areas.

In practical terms, this means:

• More apartment-style developments in Abbotsford’s core areas
• Zoning and permit incentives for developers in cities like Surrey and Chilliwack
• Greater access to CMHC-insured construction financing for rental developers

This could be significant for younger buyers who are renting while saving for a down payment—and for multi-generational families who want to invest in dual-purpose properties.

What’s Expected Next

In addition to the above, the federal government has hinted at several additional measures expected to be rolled out as part of a broader housing strategy. These measures are still unconfirmed but widely anticipated.

1. Extended Amortization for Insured Mortgages

Currently, insured mortgages with less than 20% down payment are capped at 25 years. The proposed policy would extend this to 30 years for first-time buyers.

Impact on buyers:

• Lower monthly mortgage payments
• Improved qualification under the mortgage stress test
• Greater purchasing power in markets where prices hover just above affordability thresholds

This could make a real difference in cities like Surrey and Mission, where median home prices remain high relative to average incomes.

2. Revamped First-Time Home Buyer Assistance Program

There is growing speculation that the government will relaunch or reformat the First-Time Home Buyer Incentive (FTHBI), which originally offered shared-equity funding to reduce monthly payments.

Expected changes include:

• A simplified structure with less administrative burden
• Increased maximum qualifying home prices to reflect current market values
• Regional variations based on local affordability levels

While the original FTHBI saw limited uptake, an improved version could offer significant help for buyers trying to break into the market in places like Aldergrove, East Abbotsford, or South Surrey.

3. National Framework for Legal Secondary Suites

To help increase housing supply and affordability at the community level, the government may roll out a nationwide framework for legalizing and incentivizing secondary suites.

This could include:

• Grants or tax rebates for adding basement suites or coach homes
• Easier access to financing for homeowners building rental units
• Federal funding for municipalities to fast-track approvals

If introduced, this would support affordability by:

• Allowing more buyers to qualify using rental suite income
• Increasing local rental stock in tight markets
• Making better use of existing residential land

In the Fraser Valley, where larger lot sizes are common, this could lead to a surge in multi-unit ownership opportunities, especially for young families and investors.

4. Support for Green and Energy-Efficient Homes

The package is also expected to include incentives for new homebuyers and builders to focus on energy-efficient properties. This aligns with federal goals on sustainability and long-term cost savings.

Anticipated offerings may include:

• Rebates for purchasing energy-efficient appliances and upgrades
• Mortgage rate discounts through CMHC’s Green Home program
• Fast-tracked development approvals for energy-smart builds

For homeowners in areas like Maple Ridge and Langley, these incentives could lower total ownership costs while contributing to long-term sustainability.

Local Considerations: Abbotsford, Surrey and Nearby Areas

Many of these proposed measures will have disproportionately high impact in BC’s suburban and edge markets, including:

• Surrey, where rapid densification and population growth have strained inventory
• Abbotsford, where new builds dominate much of the available housing stock
• Langley and Chilliwack, where prices are rising but remain below Metro Vancouver levels

Buyers in these regions should be closely watching for announcements related to:

• GST implementation dates and eligibility requirements
• New mortgage qualification rules (amortization, debt servicing)
• Municipal support for zoning changes and suite approvals

Preparing ahead of time—by getting pre-approved, understanding local bylaws, and watching builder inventory—will help buyers move quickly when new programs launch.

What Buyers and Homeowners Should Do Now

While many of the government’s proposed housing measures are not yet finalized, the signals are clear: changes are coming. For first-time buyers and current homeowners in Abbotsford, Surrey, and surrounding areas, the months leading up to and following the federal election present a critical planning window.

Here’s what you can do to prepare:

1. Monitor New Developments Under $1 Million

With the GST exemption targeting newly built homes priced below $1 million, now is the time to:

• Explore presale opportunities in upcoming developments
• Watch for builder incentives on move-in-ready homes
• Consider adjusting your home search to focus on qualifying properties

In high-demand areas like Cloverdale, Clayton Heights, and Central Abbotsford, developers may begin pricing strategically to fall under the exemption threshold. Buyers who act early could benefit most.

2. Get Pre-Approved and Understand Your Mortgage Options

A mortgage pre-approval helps you:

• Lock in today’s rates before they change
• Understand what price range you qualify for
• Prepare financial documentation in advance of incentive program rollouts

With possible changes to amortization limits or down payment supports, getting professional mortgage advice will ensure you’re in a strong position when new programs go live.

3. Consider Properties with Rental Potential

If secondary suite incentives are introduced, purchasing a home with existing or potential rental space (like a basement or coach house) could:

• Help you qualify for a larger mortgage
• Offset monthly payments with rental income
• Increase long-term property value

Neighbourhoods in East Abbotsford, Langley Township, and parts of South Surrey already have zoning in place for multi-unit homes, making them attractive targets.

Long-Term Implications of the Housing Package

If the proposed policies are implemented after the election, they could change key fundamentals of the Canadian housing system. Some long-term implications include:

More Accessible Entry Points for First-Time Buyers

GST exemption, extended amortizations, and revamped down payment supports could lower the barrier to entry—especially in regions just outside Metro Vancouver.

Higher Demand for New Construction

Developers may prioritize building smaller, more affordable homes that fall under the $1M threshold, increasing competition for pre-construction properties.

Broader Adoption of Legal Suites

If suite legalization is standardized and incentivized, more homeowners may convert existing spaces into rentals, increasing both housing supply and homeowner mortgage qualification options.

Stronger Focus on Green Building

With energy-efficient mortgages and rebates likely to be expanded, builders and buyers will begin factoring sustainability into every decision—from design to appliances to long-term financing.

FAQs – Pre-Election Housing Package for Homebuyers

Will the GST exemption apply automatically to all homes under $1 million?

No. It will apply only to newly constructed homes purchased by first-time buyers. Resale homes do not qualify, and pricing must remain under $1 million. The policy will take effect once it is formally passed and implemented by the federal government.

Can I still qualify if I co-buy with someone who has owned a home before?

This depends on how the government defines “first-time buyer” in the final version of the policy. In most federal programs, all buyers must meet the first-time criteria, but some allow exceptions based on life events or spousal situations.

How much can I save with the GST exemption?

A 5% savings on a $900,000 new home amounts to $45,000. This can reduce your upfront cash requirement, lower your mortgage principal, or help cover closing costs.

Will down payment support programs have income limits?

While details are still emerging, most government-backed down payment assistance programs include income thresholds to target middle-income households. Expect limits based on region-specific median incomes.

How do I find homes eligible for the exemption or future incentives?

Work with a mortgage advisor and real estate agent who specialize in new construction and first-time buyer programs. Builders in areas like Langley, Chilliwack, and Abbotsford are already beginning to market homes within the expected eligibility ranges.

Should I wait until after the election to buy?

It depends on your situation. If you’re close to buying a new build under $1 million, waiting could mean qualifying for the GST exemption. However, if you’re buying a resale property or worried about rising prices, acting sooner may still be wise. Speak to a mortgage expert to weigh your options.

Final Thoughts

The proposed pre-election housing package could offer meaningful relief for buyers and homeowners, especially in British Columbia’s suburban and growing communities. While the GST exemption is the most talked-about measure, other initiatives—like longer amortizations, legal suite incentives, and green housing support—may provide long-term affordability and flexibility for new and existing homeowners.

If you’re in Abbotsford, Surrey, Langley, or nearby areas, the key takeaway is this: now is the time to prepare. By staying informed, getting pre-approved, and aligning your strategy with upcoming policies, you can put yourself in the best possible position—whether you plan to buy this spring or later in 2025.

For the latest updates on government housing programs, local market shifts, or customized mortgage strategies, connect with a licensed mortgage advisor who understands your region and your goals.