The Canadian Lenders Association in partnership with Navigator expect Prime Minister Carney to be far more hands-on than in his predecessor in the development and implementation of financial sector and fiscal policy. There are several relevant priorities from Carney’s platform:

• Conducting a review of Canada’s mortgage market;
• Cutting GST for first-time homebuyers on homes up to $1 million;
• Reintroducing the multi-unit rental building tax (MURB) incentive;
• Delivering automatic tax-filing;
• Issuing Canada’s first-ever transition bonds;
• Conducting an expert review of the corporate tax system; and
• Strengthening the Investment Canada Act.

In a dramatic and closely contested 45th federal election, Canadians handed Mark Carney and the Liberal Party a fourth consecutive term, securing a projected 168 seats—just short of a majority. The election was shaped by heightened global trade tensions and economic uncertainty, with turnout increasing to 67%. Notably, both Conservative Leader Pierre Poilievre and NDP Leader Jagmeet Singh lost their seats, with Singh announcing his resignation. Despite a strong start in the polls, the Conservatives failed to shift enough votes to unseat the Liberals, while the NDP lost official party status with just seven seats.

Prime Minister Carney now faces urgent pressure to deliver on key economic and geopolitical promises. With Parliament set to return in late May, Carney must act swiftly on a range of priorities, including managing U.S. trade tensions, boosting military and Arctic defense spending, tackling the housing crisis, and accelerating infrastructure development. His ability to govern effectively may depend on support from either the Bloc Québécois or the NDP if the remaining undecided ridings do not push the Liberals to a majority.

Meanwhile, both the Conservative and NDP parties confront internal upheaval. Poilievre, although remaining popular with his party base, faces leadership uncertainty and may appoint a House Leader to represent the party in Parliament while he lacks a seat. Carney, for his part, must differentiate his leadership from that of his predecessor, Justin Trudeau, while building a new cabinet and setting the tone for his mandate. Parliament will reconvene on May 26, leaving the new Liberal government a narrow window to solidify its agenda before the summer recess.

Please see attached report.

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