How the federal election will impact your finances

Canada’s gearing up for another federal election in 2025 — and if you’re like most people, you’re probably wondering: “What does this mean for my money?”

With the cost of living going up faster than your DoorDash bill, and economic uncertainty lingering like a bad weather forecast, this election actually matters — especially if you're trying to stay on top of your finances. 

The three major parties — the Liberals, Conservatives, and NDP — are all pitching policies that could change the game when it comes to your day-to-day spending and long-term money goals. We’re talking trade, taxes, jobs, housing, immigration — you name it.

And while politics might feel boring or overwhelming (guilty), this stuff directly affects your bank account. Whether it’s getting a tax break, scoring more affordable housing, or just surviving the latest round of economic “uncertainty,” each party’s promises come with a price tag — or a perk — for you.

In this article, we’re gonna break it all down in plain English: what each party is saying, how their ideas could shake up your finances, and what you might want to keep an eye on before you hit that ballot box. Because even if you don’t love politics, you probably do care about your money.

Let’s get into it.

The issue: Trade and tariffs

Liberal Party: Under new leadership from current Prime Minister Mark Carney, the Liberals are taking a measured but firm approach to U.S. tariffs. They’re promising a $2-billion Strategic Response Fund to help shield Canadian industries – in particular auto – and jobs from the fallout. On top of that, they say any revenue generated from tariffs will go straight into supporting the workers and sectors taking the biggest hits. It’s a mix of “let’s push back” and “let’s soften the blow” if things get messy.

Conservative Party: Pierre Poilievre and the Conservatives are taking an aggressive stance with a clear “Canada First” vibe. Their playbook includes going toe-to-toe with the U.S. on tariffs and cutting the carbon tax entirely to lower business costs (The federal Liberals have already removed the carbon tax for individuals, going into effect on April 1). The idea is that if we want to stay competitive globally, we need to stop making it more expensive to operate here at home. For businesses, this could be a win. For consumers, time will tell.

NDP: Jagmeet Singh and the New Democratic Party are leaning hard into immediate action. They want retaliatory tariffs rolled out right away and are calling for serious financial support for any workers caught in the crossfire. 

Their message is pretty clear: Canadian jobs come first, and they’re not waiting around to see how it all plays out. It’s a more direct, worker-first approach that focuses on protecting people before profits.

Tariff talk might sound like political noise, but it can hit your wallet fast. When countries go back and forth with tariffs, prices on everyday stuff — like groceries and electronics — tend to spike. Businesses also take a hit, which can mean layoffs or higher costs passed down to you.

If things heat up, it’s worth rethinking your investing strategy. Adding stable options like GICs, bonds, or globally diversified ETFs can help smooth out the bumps. No need to overhaul everything — just make sure your money isn’t riding the full wave of market chaos.

For a detailed analysis on how U.S. tariffs may affect Canadians and strategies to mitigate these effects, consider reading how US tariffs on Canada could impact you and what you can do.

The issue: Economic uncertainty

When the economy feels shaky, people tend to pull back — less spending, fewer investments, and a whole lot of “wait and see.” Job markets get wobbly, and businesses tighten their belts.

Liberal Party: With Mark Carney’s background in the global economy leading the way, the Liberals are all about targeted support for key industries and infrastructure spending to keep jobs stable and the economy humming.

Conservative Party: Poilievre and the Conservatives want to fire up the economy with tax cuts and fewer red tape headaches — especially in the resource sector — to get investment flowing and keep jobs at home.

NDP: The NDP is focusing on direct help for regular people — cash support and stronger social programs to keep folks spending and the economy steady.

What you can do: Market volatility is never fun, but you can prepare. Keep your investments balanced and look into recession-resistant assets. Playing defense now can save you a headache later.

The issue: Tax cuts and the cost of living

Everything’s getting pricier. Groceries, rent, gas, you name it. Affordability is the issue right now. Each party is addressing the affordability issue with tax cuts — and let’s be honest — no one’s turning down a tax break. 

Liberal Party: The Liberals want to bump the lowest tax bracket down from 15% to 14%, which could put about $825 back into the pockets of a typical two-income household.

Conservative Party: The Conservatives are coming in hot with bigger tax cuts — up to $1,800 in savings for families. They're also scrapping the carbon tax for both individuals and businesses, which they say will bring down heating and fuel bills. Pierre Poilievre also proposed last week to increase the annual TFSA contribution limit from $6,000 to $10,000, enabling Canadians to save more tax-free – however, as of publish time, this is not yet an official CPC platform policy.

NDP: The NDP plan is to raise the Basic Personal Amount to $19,500 and ditch the GST on essentials — putting around $1,450 a year back into family budgets.

What you can do: Stretch your dollars by using high-interest savings accounts and good budgeting tools. Ratehub has a bunch of these to help keep your finances in shape, even when life gets more expensive.

Also read: Tax credits and rebates for the 2024 tax year

The issue: Jobs

Whether you're saving, investing, or just trying to cover rent without sweating your bank balance, job stability is the foundation for a healthy economic climate.

Liberal Party: The Liberals are putting their chips on clean energy and auto manufacturing, promising stable, high-quality jobs through targeted investments. It’s a bit of a future-focused play — jobs that are good for the planet and your bank account.

Conservative Party: Poilievre’s plan leans into the resource and infrastructure sectors, cutting red tape and lowering taxes to boost job creation. The thinking here is: get the government out of the way, and jobs will follow.

NDP: The NDP wants to create secure, union-backed jobs through public investments in things like healthcare, housing, and renewables. Basically, build what we need — and make sure workers get solid, stable employment out of it.

Where these jobs land and how many actually materialize will shape how steady your paycheque is in the coming years. So if your industry’s on the edge, now might be a good time to think about job loss protection or income insurance — just in case.

The issue: Housing

Housing affordability is still one of the biggest headaches for Canadians. Whether you’re trying to buy your first place or just keep up with rising rent, it’s tough out there — and the parties are all pitching different solutions.

Liberal Party: The Liberals want to remove the GST on new homes under $1 million to help first-time buyers get a foot in the door. They’re also planning to pour more money into affordable rental housing projects to help with supply.

Conservative Party: The Conservatives are taking that GST removal a step further — no GST on new homes up to $1.3 million, for all home buyers. They’re also talking about cutting red tape so builders can actually get shovels in the ground faster. More homes, less hassle (in theory).

NDP: The NDP isn’t playing small. On March 30th, Singh unveiled a promise to use the Canada Mortgage and Housing Corporation (CMHC) to offer first-time home buyers lower-interest mortgages, to be backed by Canadian taxpayers via the Crown Corporation. According to the NDP’s release, lowering a mortgage rate by just 0.5% would help save $9,500 over five years. Details on the interest rates for these mortgages, or the eligibility criteria, have not yet been made available. Singh points out that the CMHC currently offers favourable financing options to developers, and that a similar model could be used to offer mortgages to individuals.

The NDP is also aiming to build 500,000 new affordable homes, and are calling for stronger protections for renters. Their focus is on people who are already struggling with high housing costs — not just buyers.

These policies will shape what housing looks like over the next few years for buyers and renters. If you’re planning to buy, comparing mortgage rates and using the right tools can make a huge difference.

The issue: Severe weather

Severe weather events are increasingly more frequent across Canada. According to the Insurance Bureau of Canada (IBC), 2024 marked a record year for the costliest insured damages caused by severe weather, totalling $8.5 billion. As a result, home insurance premiums have been increasing, especially for Canadians in high-risk areas. Each party has listed their proposed policies in response to severe weather events:

Liberal Party: The Liberal Party plans to invest in Parks Canada’s wildfire response teams and expand their investments into FireSmart programs. They also plan to help Canadian families protect their homes from floods by funding roof repairs and sump pumps using a reformed carbon credit market. 

Conservative Party: The Conservative Party has not outlined specific plans for dealing with severe weather in their platform, although they do discuss broader strategies to lower costs for Canadians, for example, promising to eliminate the carbon tax.

NDP: The NDP plans to protect Canada’s environment by taking steps to reduce emissions and attract investment, including a national retrofit program that will provide free upgrades to low-income homes.

These policies outline a future approach for preventing and responding to severe weather in Canada, which may affect the insurance premiums that policyholders will pay. If you’re up for renewal or purchasing new coverage, compare home insurance quotes today to lock in your lowest rate.

The issue: Immigration

Immigration might not seem like a personal finance issue on the surface, but each party’s approach plays a bigger role than you’d think, especially when it comes to housing demand and job markets.

Liberal Party: The Liberals want to tweak immigration targets so they line up better with housing and infrastructure capacity. In other words: let’s grow, but not faster than we can handle.

Conservative Party: The Conservatives are looking to strictly cap immigration, putting the focus on bringing in skilled workers whose jobs match our economic needs. The idea is: quality over quantity, job-wise.

NDP: The NDP wants to keep immigration levels steady but improve the systems that help newcomers settle in — like recognizing foreign credentials and offering stronger support programs.

While these policies don’t always hit your wallet directly, they definitely shape the communities we live in — and the long-term health of Canada’s economy. If you’re new to Canada, Ratehub.ca has a whole suite of tools and resources designed specifically for you, from banking to insurance. Worth checking out.

Summary of each party's promises

The bottom line

From housing to taxes, jobs to trade, it’s clear this election isn’t just about politics — it’s about your wallet. Each party’s platform comes with real financial consequences, whether that’s a bigger paycheque, cheaper rent (fingers crossed), or just knowing your job’s a bit more secure.

So what can you do? Honestly, just staying informed puts you ahead of the game. Political promises don’t always pan out, but knowing what’s on the table lets you plan smarter, budget better, and maybe even save a little more.

If you're trying to make sense of it all — whether it’s comparing mortgage rates, calculating your potential tax savings, or finding a solid savings account — Ratehub.ca has the tools to help you out. 

Use this election as a chance to give your finances a bit of a check-up.

Your money, your vote — make both count.

Also read:

• Federal Liberals and Conservatives vow to remove GST on new home purchases
• Tax credits and rebates for the 2024 tax year
• How US tariffs on Canada could impact you
• How could 25% US tariffs impact Canadian mortgage rates?