How Canada’s 2025 Affordable Housing Policy Impacts Single-Family Home Values and Homeowners in Ontario and the GTA
The federal government’s 2025 affordable housing strategy marks a significant shift in the real estate market. With the creation of the Build Canada Homes agency, Canada is investing directly in affordable housing and incentivizing private developers to increase supply. Ontario has aligned with these goals, introducing local plans and regulatory changes to address affordability. Here’s what this means for single-family homes, homeowners, and those considering equity take-outs.
What Is a Non Market Home? A non market home is a property offered for sale or rent below typical market prices. These homes are funded or managed by governments or non profits, and are designed to make housing affordable for people with lower or moderate incomes. They aim to provide long-term, stable housing rather than generate profit.
Policy Highlights
Launch of Build Canada Homes to streamline and accelerate affordable housing construction.
Direct investment in new rental and non-market housing for students, seniors, and low-income residents.
Tax incentives and grants for private developers to build affordable homes.
Long-term goal: 20% of all housing to be non market by 2055, with a near term push for 40% of new builds.
Some government-backed programs support homeowners in converting single-family homes to multi-unit properties, making it easier to add rental suites or secondary units and increase rental supply. Click here to find out why so many homeowners renovate to add rental suites to their homes.
Impact on Single-Family Home Values
Ontario’s average single-family home price dropped 6.6% year-over-year to $873,000 in August 2025.
GTA benchmark home price fell 5.2% to $969,700, with detached homes down 4.6%.
Increased supply and affordability measures are moderating price growth, especially for entry-level and mid-market homes.
Demand remains strong among families and investors, but high supply is putting downward pressure on prices.
Industry forecasts expect single-family homes to outperform condos in price growth, but values will likely remain flat or slightly decline in the short term.
What This Means for Existing Homeowners
Homeowners who bought during the 2020–2022 boom may see current market values below their purchase price, eroding equity.
For those considering equity take-outs (refinances or HELOCs), lower home values mean reduced borrowing power. Lenders base loan amounts on current appraised values, not purchase price.
Homeowners with high loan-to-value ratios from recent purchases could face stricter lending criteria or higher rates if refinancing.
Those needing to access equity should prepare for updated appraisals and review their mortgage terms to avoid surprises.
Market corrections can create opportunities for buyers and investors, but existing owners must monitor their equity positions closely.
Practical Advice for Homeowners
Review your mortgage and HELOC terms if you plan to access equity soon.
Request an updated property valuation before making financial decisions.
Consult a mortgage professional to understand how current policies affect your options.
Stay informed on government programs that may support refinancing or home improvements.
Consider the long-term fundamentals: limited land and strong demand in the GTA will likely support values over time, even as short-term corrections occur.
The 2025 policy shift is reshaping Ontario’s housing market. While affordability for new buyers is improving, existing homeowners must adapt to lower valuations and changing lending conditions. Careful planning and expert advice will help you make the most of your home’s value in this evolving environment.
Take the Next Step
If you have questions about your home’s value, equity options, or how new housing policies affect your plans, reach out today. Schedule a discovery call for expert advice tailored to your situation. Stay informed, protect your equity, and make confident decisions in a changing market.