Canadian Mortgage Trends ~ April 29th, 2025
The Liberals, under the new leadership of Mark Carney, have secured a fourth consecutive term in office following Monday’s federal election, forming another minority government.
While the result maintains the status quo in terms of party balance, the change in leadership is expected to bring notable shifts in fiscal and housing policy.
Fiscal stimulus and deficit outlook
The Liberal platform includes $77 billion in new fiscal stimulus over four years, funded by larger deficits.
According to Oxford Economics, the plan represents 2.5% of 2024 GDP, with spending focused on “increased defence spending, infrastructure projects, and new housing construction alongside personal and corporate tax cuts.”
The Parliamentary Budget Officer estimates the federal deficit will rise to $62.3 billion, or 2% of GDP, in 2025–26 under the Liberal plan. That compares to a baseline deficit of $46.8 billion, or 1.5% of GDP.
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