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Buying your first home in Canada used to be a rite of passage. These days? It feels more like chasing a unicorn. For many folks under 40, the dream of homeownership has slipped out of reach — while prices soar, paycheques barely keep up.
That’s why, in the 2025 federal election, housing isn’t just another talking point. It’s the issue. And first-time home buyers aren’t looking for fluff. They want real plans, real numbers, and someone in Ottawa who actually understands what they’re up against.
So, let’s skip the spin and break down what the major parties – Liberals, Conservatives, and NDP – are offering. Some of their promises are aimed right at first-time home buyers. Others could shift the market in ways that help — or hurt.
The Liberal Party: Focused on Affordability and Fairness
The Liberal housing plan for 2025 takes a bit of a different route this time. Instead of the emphasis on tax credits and savings accounts previously, they’re now looking to increase housing supply, tighten up regulations, and give tax breaks where they could make a real difference — especially for first-time home buyers.
Key Measures
No GST on New Homes Under $1M (For First-Time Home Buyers)
If passed, this would cut the GST on newly built homes priced below $1 million.
How it helps FTHBs: That’s up to $50,000 off your home price.
Build Canada Homes Program
The goal is to double the number of homes built each year — 500,000 units — with a focus on affordable and modular housing.
How it helps FTHBs: More homes on the market can cool prices, especially for starter homes.
Slashing Development Fees
The plan is to cut municipal development fees in half for the next five years.
How it helps FTHBs: If developers pass the savings along, that means lower prices on condos and entry-level homes — exactly what first-time home buyers are after.
Home Buyers’ Bill of Rights
Proposes a ban on blind bidding, mandatory home inspection rights, and stronger buyer protections.
How it helps FTHBs: Directly protects first-time buyers from opaque, high-pressure bidding environments that often favour repeat or cash buyers.
The Liberal Takeaway
The Liberals aren’t leaning as hard on tools like the First Home Savings Account this time. Instead, they’re aiming for long-term change — more homes, better protections, and tax breaks that directly impact first-time home buyers.
The Conservative Party: Let the Market Do the Heavy Lifting
The conservative housing plan is all about removing roadblocks. They believe high prices come from government red tape, delays, and heavy fees. So their strategy? Clear the path and let the private sector handle the rest — with some nudges along the way.
Key Measures
No GST on New Homes Under $1.3M (For Everyone)
Proposes scrapping the 5% GST on new builds under $1.3 million for all buyers.
How it helps FTHBs: Urban areas where starter homes are pricey could see more action from first-time home buyers thanks to lower prices.
Municipal Fee Refund Match
Ottawa would cover 50% of any municipal development charge cut — up to $50,000 per home.
How it helps FTHBs: Indirectly lowers the cost of new construction, making pre-construction and early-market homes more affordable.
Turning Federal Land Into Housing
They want to convert 15% of federal land and unused buildings into housing.
How it helps FTHBs: Increases urban housing stock, particularly in high-demand areas where affordability is often out of reach.
Speeding Up Permits by Cutting Red Tape
This policy gives cities more funding for infrastructure (like roads and transit) if they approve housing quickly and allow for more homes in each area.
How it helps FTHBs: It speeds up the building of more affordable homes by encouraging cities to say “yes” to housing faster.
The Conservative Bottom Line
The conservative housing plan doesn’t have many direct first-time buyer–specific goodies. But their whole pitch is that if you make the market more efficient and cheaper overall, first-time home buyers will benefit without needing special treatment.
The NDP: Structural Reform Over Short-Term Relief
The NDP housing plan comes from a whole different mindset. They’re not interested in temporary fixes — they want to rewrite the rules. If you feel like the market is flat-out broken, this might be the platform that speaks to you.
Key Measures
Build 3 Million Homes by 2030
A commitment to build 3 million homes, with a strong focus on non-market housing like co-ops and community-owned stock.
How it helps FTHBs: Increases access to permanently affordable ownership models for those shut out of traditional markets.
Communities First Fund
The federal government offers money to cities that allow more housing and approve it faster—especially affordable options.
How it helps FTHBs: It leads to more low-cost homes being built, making it easier for new buyers to find something they can afford.
CMHC Lending Expansion
Proposes low-interest, publicly backed mortgages through CMHC to support affordable ownership.
How it helps FTHBs: Supports buyers who qualify financially but can’t access traditional bank lending, lowering monthly costs and risk.
Rent Controls and Renter Rights
Includes bans on renovictions, limits on rent increases, and enforcement of tenant rights.
How it helps FTHBs: Indirectly supports future homeowners by allowing them to save consistently while renting, without unpredictable cost spikes.
The NDP Bottom Line
The NDP housing plan isn’t about quick wins. It’s about long-term affordability, public investment, and making sure first-time homebuyers aren’t stuck renting forever.
First-Time Buyers: Who Can You Trust in the 2025 Federal Election?
Well, that depends on what’s standing in your way.
If you believe affordability starts with structural supply and fairer buying conditions, the Liberal Party offers targeted tax relief, increased housing starts, and regulatory reform to protect buyers entering the market for the first time.
If you’re convinced the problem is too much red tape and too many fees, the Conservative platform aims to lower homebuilding costs, speed up approvals, and cut taxes to push prices down across the board — indirectly helping first-time buyers by making the market more affordable.
If you feel locked out entirely and believe the market is fundamentally broken, the NDP’s plan focuses on public investment, affordable ownership pathways, and renter protections — a deeper, longer-term fix for generational affordability.
No matter where you land, this federal election is a big moment for first-time home buyers. It’s not just about who has the best pitch — it’s about who actually gets what you’re facing and who’s got a plan that can help you cross the finish line into homeownership.
Still unsure which path is right for you?
Navigating housing policies and figuring out how they actually affect you isn’t easy. That’s where Valery comes in.
Valery is your AI real estate companion, constantly updated with the latest market insights, policy changes, and buying programs across Canada. Whether you’re comparing platforms, calculating potential savings, or just trying to understand what the GST cut really means for your first home, Valery gives you instant, personalised guidance.
Chat with Valery now and get answers tailored to your home-buying journey — in seconds.
FAQs for First-Time Home Buyers
1. Which party has the most to offer directly for first-time home buyers?
The Liberals offer a combo of tax relief and buyer protections that directly support first-time home buyers.
2. How do Conservatives help first-time home buyers without specific programs?
Their focus on cutting costs and speeding up building is designed to lower prices overall — a big help for first-time home buyers.
3. Why is the NDP housing plan considered more radical?
The NDP housing plan goes beyond quick fixes. It’s about changing the system entirely — with affordable co-op housing, public mortgages, and rent control that help first-time home buyers save.
4. What’s the deal with GST cuts — are they really that helpful?
Absolutely. Cutting GST can take tens of thousands off the price of a new home — a serious break for first-time home buyers.
5. What should first-time home buyers focus on in the 2025 federal election?
Look at what’s stopping you — whether it’s high costs, lack of options, or saving struggles — and pick the plan that tackles that head-on.
6. Are there options for people who can’t get approved by banks?
Yes. The NDP wants CMHC to offer public, low-interest loans — a great option for first-time home buyers with decent finances but tough approval odds.