Post-Election Housing & Mortgage Outlook: What to Expect

From first-time buyer incentives to major housing investments, the recent federal election could bring notable changes for Canadian homeowners and buyers. With the Liberal Party — now under the leadership of Mark Carney — winning a fourth consecutive term, here’s what to keep an eye on in the weeks and months ahead.

Another Minority Government, More Collaboration

The Liberals will once again govern with a minority, meaning they’ll need support from other parties to move key legislation forward. While many campaign promises haven’t been implemented yet, we expect more clarity once the federal budget is released — likely in June.

Here’s how the election outcome may impact your mortgage, financial goals, or next real estate move.

1. First-Time Buyer Incentives Could Save You Thousands

One of the headline promises: eliminating the GST on new homes priced under $1 million — but only for first-time buyers. If this goes ahead, it could mean up to $50,000 in savings on a newly built home. The policy isn’t law yet, but it’s expected to be included in the upcoming budget.

This could be a game-changer for first-time buyers already facing high prices and limited inventory.

2. A Major Push to Build More Homes

Housing affordability was front and centre during the campaign. The Liberals pledged over $25 billion to speed up home construction. The bulk of this support would go to developers, municipalities, and non-profits through low-cost financing — with a focus on rental and affordable housing in high-demand regions.

The goal is clear: increase supply to bring balance to the market.

3. Investments in Infrastructure and Zoning Reform

To support new housing, the government is expected to continue investing in transit, utilities, and infrastructure. These upgrades make it easier to build — and easier for Canadians to live in — more affordable, well-connected communities.

In addition, there’s strong support for zoning reform, especially policies that allow for higher-density housing near transit hubs. This could open the door for more multi-unit developments in areas traditionally limited to single-family homes.

4. Interest Rate Cuts Could Be Coming — But Risks Remain

After a year of declining rates, more relief may be on the way. Many economists expect one or two Bank of Canada rate cuts in 2025 as the economy slows. If that happens, variable-rate borrowers and those renewing soon could see some welcome relief.

That said, economic uncertainty — from global trade tensions to rising deficits — could complicate the path forward. It's a good idea to stay nimble and revisit your financial strategy regularly.

What’s Next?

We’ll know more once the federal budget is announced. That’s when we’ll see which promises turn into action — and how quickly.

In the meantime, this is a great opportunity to review your mortgage and long-term financial plan. Whether you’re buying your first home, renewing your mortgage, or simply planning ahead, I’m here to help you make sense of what’s coming and how to stay ahead.

Reach out anytime — I’d be happy to help you navigate what’s next.