Campaign begins as Carney and Poilievre square off on affordability, trade and tax policy
As Canada approaches its 45th general election on April 28, 2025, the nation’s attention is firmly fixed on pressing issues like housing affordability and economic stability. For homeowners, prospective buyers, and those navigating the mortgage landscape, understanding the potential implications of this election is crucial.
Key Election Issues: Housing and Economy
The current political discourse is dominated by concerns over the rising cost of living and housing affordability. Both major political parties have unveiled strategies aimed at addressing these challenges:
- Liberal Party’s Initiatives: Led by Prime Minister Mark Carney, the Liberals propose a one-percentage-point reduction in the lowest federal income tax bracket, aiming to save the average two-income household approximately $825 annually. Additionally, they plan to eliminate the 5% Goods and Services Tax (GST) on newly constructed homes under $1 million for first-time buyers, a move designed to reduce upfront costs and stimulate housing construction.
- Conservative Party’s Proposals: Under Pierre Poilievre’s leadership, the Conservatives have committed to removing the GST on affordable new home construction. Their broader housing strategy focuses on accelerating homebuilding by cutting bureaucratic red tape, penalizing municipalities that hinder development, and repurposing federal lands for residential use.
Implications for Homeowners and Buyers
These proposed policies could have significant effects on the housing market:
- Tax Adjustments: Reducing income tax rates may enhance disposable income, potentially easing the financial burden on households and improving mortgage affordability
- GST Elimination on New Homes: Removing the GST for eligible first-time buyers could lower the initial costs associated with purchasing a new home, making homeownership more attainable for many Canadians
- Housing Supply Enhancements: Efforts to streamline construction processes and repurpose land are intended to increase housing availability, which could help moderate price increases over time.
Staying Informed and Prepared
For those involved in the housing market, staying updated on these developments is vital:
- Monitor Policy Announcements: Keep abreast of each party’s detailed housing and economic plans as they evolve throughout the campaign.
- Evaluate Personal Impact: Consider how proposed tax changes and housing incentives align with your financial situation and homeownership goals.
- Consult Professionals: Engage with mortgage brokers and financial advisors to understand how these potential policy shifts could affect your mortgage options and overall financial planning.
As the election date nears, the emphasis on housing and economic policies underscores the importance of informed decision-making for current and prospective homeowners. Staying engaged with the political discourse will empower you to navigate the mortgage landscape effectively and make choices that align with your aspirations.
Source: Canadian Mortgage Trends
