Mortgages & 2025 Federal Election Promises

As Canadians prepare to vote on April 28, 2025, housing affordability has emerged as a pivotal issue in the federal election. With home prices soaring and supply lagging, each major political party has unveiled distinct housing strategies aimed at addressing the crisis. For prospective homebuyers, renters, and mortgage clients, understanding these proposals is crucial.

The Housing Crisis at a Glance

Canada faces a significant housing shortfall. According to the Canada Mortgage and Housing Corporation (CMHC), an additional 3.5 million homes need to be built by 2030 to restore affordability. In cities like Vancouver, the annual household income required to afford a condo exceeds $177,000, while the median after-tax income is just under $90,000.

References to do with the Housing Crisis

Party Platforms on Housing

Liberal Party – Mark Carney

Prime Minister Mark Carney’s Liberals propose an ambitious plan to tackle the housing crisis:

• Build 4 Million Homes: Aiming to construct 500,000 homes annually, focusing on affordability and sustainability.
• $10 Billion Investment: Allocating funds for affordable housing, including supportive and Indigenous housing.
• Build Canada Homes Agency: Establishing a federal body to oversee large-scale housing projects and provide favorable financing to builders .
• GST Elimination: Removing the Goods and Services Tax on new homes valued under $1 million for first-time buyers

Conservative Party – Pierre Poilievre

Pierre Poilievre’s Conservatives focus on market-driven solutions:

• Tax Incentives: Offering tax relief to encourage housing development.
• Municipal Reform: Incentivizing municipalities to reduce red tape and accelerate building approvals.
• Deficit Reduction: Aiming to reduce the federal deficit, potentially impacting funding for housing initiatives

New Democratic Party (NDP) – Jagmeet Singh

The NDP emphasizes social housing and tenant protections:

• 100,000 Rent – Controlled Units: Constructing affordable rental units on federal lands over the next decade.
• Retrofit Program: Upgrading 3.3 million homes for energy efficiency.
• Tenant Protections: Linking federal housing funds to provinces and municipalities that implement strong tenant rights policies

Green Party

The Greens advocate for sustainable and community-focused housing:

• Zoning Reform: Promoting “missing middle” housing through more permissive zoning laws.
• Non-Profit Housing: Partnering with co-operatives and non-profits to build affordable homes.
• Speculation Taxes: Implementing taxes to curb housing speculation and keep homes affordable

Canadian Future Party

A newer political entity, the Canadian Future Party proposes:

• Federal Involvement: Direct federal participation in housing developments, especially for military and government employees.
• Remote Work Promotion: Encouraging remote work to alleviate housing demand in urban centers.
• Indigenous Housing: Building off-reserve housing to address Indigenous communities’ needs

Implications for Homebuyers and Mortgage Clients

The proposed housing policies have direct consequences for those looking to enter the housing market:

• Increased Supply: Liberal and NDP plans to build millions of homes could alleviate supply constraints, potentially stabilizing prices.
• Tax Incentives: GST elimination and other tax breaks may reduce upfront costs for first-time buyers.
• Interest Rates: Market-driven approaches may influence interest rates and mortgage affordability.
• Tenant Protections: Enhanced tenant rights could impact rental markets and investment properties

Comparative Overview

Liberals – Large-scale home building, GST elimination, federal agency
Conservatives – Tax incentives, municipal reform, deficit reduction
NDP – Rent-controlled units, retrofitting homes, tenant protections
Green Party – Zoning reform, non-profit housing, speculation taxes
Canadian Future – Federal development, remote work promotion, Indigenous housing

What to Watch Post-Election

Regardless of the election outcome, the housing crisis remains a pressing issue. Stakeholders should monitor:

• Policy Implementation: Timelines and effectiveness of proposed housing initiatives.
• Market Response: How the real estate market reacts to new policies and regulations.
• Interest Rates: Potential changes in mortgage rates influenced by federal economic policies

Final Thoughts

The 2025 federal election presents a pivotal moment for Canada’s housing landscape. Each party offers distinct solutions, and the chosen path will significantly impact homebuyers, renters, and the broader real estate market. Staying informed and understanding these proposals is essential for making sound financial decisions in the evolving housing environment.

Note: This article is for informational purposes only and does not constitute financial advice. Always consult with a financial advisor or mortgage professional before making housing-related decisions. If you have anymore questions please contacts us.