Ottawa policy is set to accelerate homebuilding, could create fresh opportunities for local lenders
Ottawa’s latest federal budget marked a decisive shift in economic strategy, with the government rolling out the Buy Canadian Policy. This initiative is designed to channel billions in public spending toward Canadian-made materials and small business contractors. The policy will boost local supply chains, speed up homebuilding, and open more doors for mortgage professionals.
The honourable Rechie Valdez, minister of Women and Gender Equality and secretary of State (Small Business and Tourism), said the policy would “strengthen supply chains, streamline access to federal opportunities and ensure that businesses of all sizes have a fair chance to compete and succeed.”
Valdez added, “When we buy Canadian, we are supporting good jobs, strengthening our economy and building prosperity here at home.”
The Buy Canadian Policy, first unveiled last September, will see nearly $186 million in new funding from Budget 2025 to ensure its full implementation. The policy will initially apply to sectors like defence and construction, with a phased rollout to infrastructure and housing projects—including the Build Canada Homes initiative—by spring 2026. In total, as much as $70 billion in additional public investment is expected to flow into Canadian-made products and services.
Build Canada Homes, a flagship program aimed at ramping up residential construction, will now be required to prioritize Canadian steel, wood, and aluminum. This shift is expected to benefit local builders and suppliers, potentially speeding up project timelines and creating new lending opportunities for mortgage professionals.
The government’s Small and Medium Business Procurement Program, backed by $79.9 million over five years, is set to further level the playing field for SMEs. This support is expected to help smaller builders and mortgage brokers break into federal projects, increasing competition and innovation in the sector.
The policy could help insulate Canada’s housing market from global supply chain shocks and trade disruptions—a vulnerability exposed during recent years of economic turbulence.
Canadian business sentiment remained subdued in the third quarter of 2025, as persistent trade tensions and tariff uncertainty continued to cast a long shadow over investment and hiring plans, according to the Bank of Canada’s latest Business Outlook Survey.
Conducted mainly before the removal of certain Canadian counter-tariffs, the survey found that firms’ outlooks and intentions showed only a gradual improvement, with the BOS indicator still well below average levels.
Exporters, particularly in the steel and aluminum sectors, continued to report especially weak outlooks.
“Although some exports of primary aluminum have been redirected to Europe, these exporters view this strategy as an unsustainable alternative to US market access because of concerns about long-term profitability,” the survey found.
The Buy Canadian Policy’s full impact will depend on its execution, but for now, Ottawa’s message is clear: the future of Canada’s housing market will be built with Canadian hands and materials, offering new prospects for mortgage professionals and homebuyers alike.
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