During the recent federal election campaigns, housing was once again shaping up to be a central issue. Amid rising home prices, affordability challenges, and elevated interest rates, Canadians are looking to political leaders for concrete plans – not just promises – that address both short-term affordability and long-term housing supply.

At Homewise, we work with first-time buyers, current homeowners and investors every day, and one thing is clear: Uncertainty in the market is real. While elections always bring speculation, this one could have tangible impacts on the housing landscape.

1. Interest rates and market expectations

While interest rates are set by the Bank of Canada and not political parties, the broader economic policies proposed by each party can influence inflation expectations – and in turn, how the central bank reacts.

Policies that increase government spending or alter taxation could have ripple effects on inflation, which would influence whether the Bank of Canada accelerates or delays rate cuts.

For homeowners renewing their mortgage soon or new buyers entering the market, rate direction is key. Volatility could also mean it makes sense to lock in. A stable or declining rate environment could create more buying opportunities, especially in currently slow markets.

2. Housing supply and affordability: Promises vs reality

Almost every major federal party has announced plans to tackle housing affordability. These include:

• Accelerated homebuilding targets
• Incentives for purpose-built rentals
• Zoning reform tied to federal funding

While these commitments sound promising, it’s important to evaluate their feasibility and timelines. Increasing housing supply meaningfully requires collaboration between all levels of government, as well as private sector buy-in.

3. First-Time buyer incentives

We expect renewed focus on programs that assist first-time homebuyers. Whether it’s expanding the First Home Savings Account (FHSA), adjusting the First-Time Home Buyer Incentive (FTHBI), or offering land transfer tax rebates, parties will likely look to strengthen voter appeal among younger Canadians.

However, as we’ve seen before, the impact of these programs is often limited by eligibility restrictions or underfunding. Buyers should look beyond headlines and understand how these programs actually apply to them.

4. A wait-and-see market?

Election cycles often slow buyer activity. With many Canadians waiting to see how policies shake out and whether rate cuts materialize, the summer and fall markets may be quieter than usual.

But for prepared buyers, this period could offer less competition and better negotiating power – especially for homes that have been sitting on the market.

Final thought

Political shifts bring the potential for policy changes, but real impact on housing takes time. As a buyer or homeowner, the best strategy is to stay informed, work with experts, and ensure you understand all of your mortgage and financing options.

Regardless of who wins, the fundamentals remain: Plan well, shop around, and don’t let headlines drive your decision-making.