From first-time buyer incentives to homebuilding promises, here’s what to watch for in the coming weeks or months.
Canadian voters have re-elected the Liberal Party, this time under new leader Mark Carney, to a fourth consecutive term.
The Liberals will once again govern with a minority in Parliament, meaning collaboration with other parties will shape many decisions going forward.While much remains to be seen, especially when it comes to the upcoming federal budget, here’s what the election outcome could mean for your mortgage, financial plans, or future real estate decisions.
More support for first-time buyers
A key Liberal campaign promise was to remove the GST on new homes under $1 million, but only for first-time buyers. That could mean a savings of up to $50,000 on a new-build home. The policy hasn’t passed yet, but it's expected to be included in the next budget, likely in June.
A bigger push to build housing
Housing affordability was front and centre during the campaign. The Liberals have proposed over $25 billion in support to speed up homebuilding, mostly through low-cost financing to developers, municipalities, and non-profits. The goal is to make it easier to build homes, particularly rental and affordable units, in the places that Canadians want to live.
Investments in infrastructure and zoning reform
Expect continued federal spending on public transit, utility upgrades and municipal partnerships, things that make it easier to build housing and connect people to more affordable areas. The Liberals have also signalled support for zoning changes to allow more density, especially near transit stations.
Rates may ease later this year but uncertainty remains
While interest rates have come down significantly over the past year, economists are still forecasting one or two additional Bank of Canada rate cuts this year as the economy slows. While not guaranteed, if it becomes reality, it could offer some relief for variable-rate borrowers and help those coming up for renewal. However, with economic risks still in play, including rising government deficits and global trade tensions, the path forward is not crystal clear.
What happens next?
We’ll learn more in the coming month or so when the new government lays out its full budget. That’s when we’ll get a clearer picture of how, and when, these promises might be implemented. Until then, this is a good time to review your plans and financial picture to ensure you are doing what’s best for your personal circumstances while also being prepared for how any new policies might impact your financial goals.If you’re buying, renewing or just want to plan ahead, I’d be happy to walk through it with you. Give me a call today!