Housing & Mortgage Outlook: What to Watch Post-Election
From first-time buyer incentives to homebuilding initiatives, here’s what Canadians can expect in the coming weeks and months.
Voters have re-elected the Liberal Party — now led by Mark Carney — to a fourth consecutive term. With another minority government in place, collaboration with other parties will be key in shaping housing and economic policy moving forward.
While we await full details in the upcoming federal budget, here’s how the election outcome could affect your mortgage, finances, or real estate plans:
More Support for First-Time Buyers
A standout campaign promise was to eliminate the GST on new homes priced under $1 million — but only for first-time buyers. If passed, this could mean savings of up to $50,000 on a new-build home. This policy hasn’t been implemented yet, but it’s expected to be included in the next federal budget, likely coming in June.
A Bigger Push to Build Housing
Housing affordability took centre stage during the campaign. The Liberals have proposed over $25 billion in funding to accelerate homebuilding, with a focus on low-cost financing for developers, municipalities, and non-profits. The aim? To increase the supply of rental and affordable housing in high-demand areas across Canada.
Investments in Infrastructure & Zoning Reform
To support housing growth, the government is expected to continue investing in transit, utility upgrades, and municipal partnerships. These improvements make it easier to build and live in more affordable areas. The Liberals have also expressed support for zoning changes that would allow more housing density, particularly near public transit hubs.
Rates May Ease — But Uncertainty Remains
Interest rates have dropped substantially over the past year, and economists are predicting one or two more Bank of Canada rate cuts in 2025. If those happen, borrowers with variable rates — and those facing renewals — could benefit. That said, economic uncertainty remains due to rising government deficits and global trade risks, so it’s important to stay flexible.
What Happens Next?
We’ll get more clarity once the new government delivers its federal budget — expected within the next month. That’s when we’ll know more about how and when these proposed measures will roll out.
In the meantime, it’s a great opportunity to revisit your mortgage and financial strategy. Whether you're buying, renewing, or planning ahead, I'm here to help make sure you're prepared for whatever changes lie ahead.
Let’s chat — reach out anytime!