Canadians are set to go to the polls on April 28 as Prime Minister Mark Carney, a former chairman of major real estate investor Brookfield Asset Management, looks to lead the Liberal Party to a fourth victory in an election expected to include debate over property and taxation issues.
The discussion comes as trade issues, specifically tariffs, affecting all aspects of the economy, which are a backdrop to a short campaign triggered Sunday by Carney, who replaced Justin Trudeau as party leader this month.
"We are facing the most significant crisis of our lifetimes because of President Trump's unjustified trade actions and his threats to our sovereignty," said Carney, in a speech just after visiting the Governor General, the King's representative in Canada, who granted him the election request. "President Trump claims that Canada isn't a real country. He wants to break us so America can own us. We will not let that happen."
Reports indicate that additional tariffs proposed by Trump and set to take effect on April 2 have been narrowed to 15 industries. Carney's main Conservative opponent is Pierre Poilievre.
Polls initially indicated that the Liberals were headed toward potential third-party status due to Trudeau's waning popularity. Following Carney's overwhelming win for his party's leadership, however, the Liberals have been climbing in the polls with some forecasts suggesting they could achieve a majority victory, something that seemed assured for the Conservative Party just one month ago.
Having never held elected office, the former head of the Bank of Canada and Bank of England kicked off his campaign with significant promises that could affect real estate, which some have said copy similar policies proposed by the Conservatives.
Carney's government has said Canada will eliminate the Goods and Services Tax for first-time homebuyers of property priced at or under $1 million. The Ottawa-based Canadian Home Builders' Association welcomed the policy as a move expected to make housing more affordable for the segment of the market looking to buy. The proposal comes as the Canadian Real Estate Association reported that existing home sales have stalled since the tariff talk started with Trump's election.
The real estate association said new home construction is also slowing.
Creating more housing
Cutting the Goods and Services Tax, also known as the GST, would create more supply and be an essential permanent move because it would help counter price increases due to tariffs, the homebuilders association said.
“We are pleased that two major federal parties have made substantial promises regarding GST on new homes," said Kevin Lee, chief executive of the home builder's group, in a statement. "In light of the tariff war with the United States, it is doubly important that all avenues to improve housing affordability for Canadians are explored. Addressing the GST on new housing is certainly a step in the right direction in ensuring Canada has a comprehensive plan to support better housing affordability and supply in the face of increasing construction costs, and is long overdue."
Conservatives, who have been out of power since 2015, have previously proposed removing the Goods and Services Tax on new homes under $1 million.
Conservatives have opposed attempts by the Liberal Party, supported by the New Democrats, to increase the inclusion rate on the capital gains tax from 50% to two-thirds.
The legislation that was to take effect on June 25 and caused some vendors to sell ahead of the deadline to beat the tax was never implemented. The Trudeau government delayed it for a year, and Carney said he plans to axe it altogether.
Housing market conditions remain a concern that all parties should address, according to Phil Soper, chief executive of Royal LePage, one of Canada's largest residential brokerages.
Soper, who has urged leaders to expand loan amortizations and raise the cap on mortgage insurance, is also asking candidates to pledge to remove the stress test requirement for existing homeowners when changing lenders. This would allow consumers to access better rates and encourage more competition.
“The next government must prioritize addressing the supply crisis, which affects millions of Canadians seeking affordable shelter and stability for their families," Soper said in a statement earlier this year.