With the Liberals securing a minority government under the leadership of Mark Carney, housing policy is set to take centre stage — and for homebuyers in Brampton, the ripple effects could be big. Affordability has improved, but supply is severely constrained, and young Canadians are feeling increasingly shut out of the dream of homeownership.
To address this, the newly elected Liberal government has unveiled what it’s calling the most ambitious federal housing strategy since World War II — a sweeping plan to double home construction, restore affordability, and reset Canada’s housing future.
Here’s what you need to know — and what it could mean for your mortgage strategy.
A Federal Housing Strategy Inspired by History
During the post-WWII years, Canada faced a similar housing crisis. In response, the federal government stepped in to build tens of thousands of starter homes, create new housing agencies, and develop construction supply chains from scratch.
Now, the Liberals aim to revive that spirit through Build Canada Homes (BCH) — a new federal entity tasked with leading housing construction and catalyzing an entire industry around affordability, scale, and speed.
Key Components of the Plan
Doubling Canada’s Housing Starts
The goal is to build 500,000 homes per year within a decade — double the current pace. This includes public and private sector collaboration, public land development, and streamlined processes to get homes built faster.
Build Canada Homes (BCH)
BCH will:
- Act as a direct developer of affordable housing, particularly on public lands.
- Consolidate housing programs like the Affordable Housing Fund and Federal Lands Initiative under one umbrella.
- Lease and acquire land to expand the stock of non-market and affordable housing.
- Offer $25B in debt financing and $1B in equity to support prefab/modular home builders, boosting Canadian innovation in low-cost, low-emissions construction.
- Issue bulk orders for housing units to ensure consistent demand and efficiency.
$10B in Low-Cost Financing for Builders
$6B is allocated for deeply affordable, supportive, Indigenous, and shelter housing, with $2B earmarked for student and senior housing. A further $4B will go toward long-term, fixed-rate funding for builders of non-market housing.
Making the Market Work Better
Beyond direct builds, the Liberals plan to cut costs and red tape for private developers and rental investors:
- Cutting municipal development charges in half for multi-unit residential housing — saving up to $40,000 per unit in cities like Toronto.
- Reinstating the MURB tax incentive, which generated nearly 200,000 units in the 1970s.
- Encouraging property conversions by reducing tax liabilities for owners who sell to nonprofits or land trusts, on the condition that proceeds go toward new rental housing.
- Streamlining zoning and permitting through the Housing Accelerator Fund, standardized pre-approved designs, and simplified prefab regulations.
- Eliminating GST for first-time buyers on homes up to $1M — a savings of up to $50,000.
- More inventory across different affordability levels
- A shift in builder behaviour and project timelines
- Changing lending environments as policy and rates adjust in tandem
What Experts Are Saying
Optimistic Takes
Housing policy experts and economists generally view the plan as a massive step forward in federal housing intervention.
Mike Moffatt, senior director at the Smart Prosperity Institute, called the 500,000 homes per year target “aggressive but necessary,” especially given Canada’s immigration levels. He noted the plan’s bulk procurement strategy and prefab funding could modernize construction.
Jennifer Keesmaat, former Toronto chief planner, praised the public land focus and prefab innovation but warned that execution will make or break the outcome: “If BCH becomes another bureaucratic layer instead of a fast-moving delivery tool, the ambition won’t translate into results.”
JP Boutros, mortgage sector advisor, added: “The money can likely be found to start it, but housing needs maintenance. The provinces need to be part of any such plan. Because of the intricacies, BCH will not be a Year One priority.”
Critical Perspectives
Adrian Rocca, CEO of Fitzrovia Real Estate, wrote: “More bureaucracy is not the answer. Builders build homes, bureaucracies build bottlenecks.”
Some experts remain unconvinced that a new federal entity will address core housing challenges. Zoning is still controlled municipally. Labour shortages and slow approvals are local realities. Without provincial and municipal buy-in, critics argue, BCH could stall before it starts.
Economists like Avery Shenfeld at CIBC warn of rising deficits to fund the plan. “Budget deficits look likely to head higher in the near term,” he said, particularly in response to trade volatility with the U.S. — a situation that could derail Carney’s priorities or prompt tighter fiscal controls.
Meanwhile, housing bodies like TRREB and CREA have cautiously welcomed the housing focus but are pressing the government for rapid implementation. “We need less talk and more action,” noted one TRREB board member. “This can’t be another four-year promise.”
The Political Reality: What a Strong Minority Means
Despite falling short of a majority, Carney’s Liberals won 169 seats — a clear mandate, bolstered by wins in Ontario and Quebec. Conservative leader Pierre Poilievre lost his seat and acknowledged Carney’s win as legitimate.
Still, implementation will require cooperation. With the NDP holding the balance of power, programs like BCH will need to satisfy left-leaning priorities on tenant protections, Indigenous housing, and deep affordability.
The wildcard? U.S. trade policy. Trump’s annexation rhetoric and tariff threats have already shaken Canadian markets. Carney was elected largely as a stabilizing economic force, not just a housing reformer. That means housing, while important, may play second fiddle to trade, inflation, and job policy in early 2025.
What It Means for Brampton
In cities like Brampton, where demand remains strong and supply lags far behind, the success of this plan depends heavily on coordination between all levels of government. If programs like Build Canada Homes are paired with local zoning reform and faster approvals, Brampton could benefit from a more diverse housing stock and improved affordability.
But with borrowing costs, trade policy, and government deficits in flux, working with an experienced mortgage broker in Brampton is more important than ever.
Bigger Picture: What to Watch for in Mortgages
The outcomes for mortgagors will depend heavily on how bond markets and the Bank of Canada respond to Carney’s economic and housing agenda. That will hinge on whether the Liberals can strike a working deal with the NDP, and how effectively Carney can manage escalating trade tensions with the U.S.
We’ll learn much more in the June budget. But other things being equal (OTBE), larger federal deficits could lead to more bond issuance, which in turn may lower yields and mortgage rates.
However, if Carney pivots hard toward fiscal discipline to stabilize trade relations, rate relief could be slower.
Why Now Is the Time for Expert Mortgage Advice
Big, structural changes to Canada’s housing system create opportunities and risks for homebuyers, homeowners, and investors alike.
If even part of this plan materializes, we could see:
But navigating this evolving landscape — especially amid inflation, rate volatility, and new federal housing initiatives — means that mortgage advice is more critical than ever.
Start Smart. Start with Rakhi Madan.
Whether buying your first home, refinancing, or navigating today’s shifting landscape, having the right guidance is essential.
As the #1 rated mortgage broker in Brampton, Rakhi Madan provides personalized advice that helps clients make smart, confident mortgage decisions — no matter how the market or policy shifts.
Ready to make your next move with confidence? Start with Rakhi.
