Canada has voted — and while it wasn’t a landslide, the Liberal Party, now led by former Bank of Canada Governor Mark Carney, has secured a minority government in the 2025 federal election. For those watching the housing market closely, this political shift could mark a new chapter in how we tackle: affordability, construction, and support for first-time buyers.
Throughout his campaign, Carney made it clear: housing supply and affordability were at the top of the priority list. And now that the Liberals are back in power — even in a minority — we can expect movement on a number of bold initiatives, especially the creation of a new federal agency called Build Canada Homes (BCH).
This agency would aim to double the rate of home construction in Canada, reaching 500,000 homes per year by supporting Canadian prefab home builders and offering billions in financing.
The Liberals are promising:
â—Ź $25 billion in debt financing to accelerate construction
â—Ź $10 billion for affordable housing developers
â—Ź $1 billion in equity funding for innovative housing solutions
One of the more headline-worthy promises is the elimination of GST on new home purchases for first-time buyers. That could be a game-changer for those struggling with upfront costs, and combined with possible interest rate cuts later this year, it could open the door for many who felt locked out of the market during the last rate-hike cycle.
With no majority in hand, the Liberals will need to work across party lines to pass legislation. That means compromise is coming, and housing measures may need to align with NDP or Bloc priorities to become law. While this could slow down progress, it also opens the door to a more balanced, collaborative approach to solving Canada’s housing crisis.
We’ve seen minority governments push through major reforms before — so expect a lot of backroom negotiation, but also expect housing to stay front and centre.
With this political shift, it’s not just policy on the horizon — it’s opportunity. Right now, we’re seeing a cooler market, with less competition, higher inventory, and interest rates expected to ease in the coming months.
If you’ve been waiting on the sidelines, this might be the window you’ve been waiting for. It’s a rare moment where buyers can explore listings with more flexibility, negotiate stronger terms, and position themselves for long-term wins before prices rebound.
At Go Approval, we’re here to help you make sense of the headlines and make smart moves in today’s market. Whether you’re renewing, refinancing, or getting pre-approved for the first time — now’s a smart time to talk.