Federal Guardrails: Re-Assessing the Ability of Governments to Help
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The CEO Perspective, by Michael Brooks
January 28, 2026
New Landscape of Government Priorities
In the second half of 2025, we held two sets of face-to-face meetings with government officials: ten in July and four in October. At the July meetings, many ministers and political staff were newly appointed and still building their teams. The government had issued a single, broad mandate letter for all ministers, which left understandable questions about priorities and expectations.
The Shift Toward Low-Cost and No-Cost Solutions
While we took with us a clear set of initiatives we believed were needed to stimulate the market and to provide a better tax and investment system to attract foreign capital, the conversations had a recurring theme: officials were focused on where spending could be reduced and which programs could be cut. At the time, all federal departments were being asked to identify reductions of 7.5%, 10%, and 15% over a three-year period, including crown corporations such as CMHC. We are now seeing a lot of layoff notices reported in the media within the Federal Civil Service, with the unions pushing back.
The second interesting lesson from calls and meetings in 2025 was that, while governments were interested in initiatives to make Canada more competitive and achieve Prime Minister Carney’s goal of making us the strongest economy in the G7, funds were (and remain) scarce or nonexistent. We were explicitly asked to bring ideas to the Prime Minister’s Office, the Department of Finance, and Housing, Infrastructure and Communities Canada, that were low-cost or no-cost. That message has been consistently reinforced ever since.
One of the main asks of the industry nationally was the waiver of GST on all new home sales, not just for first-time home buyers, as was offered and is contained in the still-in-committee Budget Implementation Act 2025. We understand that while that is not completely off the table, it’s perceived as very expensive.
Federal & Provincial Deficits
At REALPAC, we are going through the process of now refiltering suggestions for government incentives and needed areas around cost implications and value for money. The federal deficit is projected at $80 billion this year, apparently the second-highest ever in Canada, according to the Fraser Institute. Federal money, whether it’s a cash grant or an agreement to forego tax revenue, is indeed scarce, and the industry likely has to solve as many problems as it can on its own.
Provinces aren’t in any better shape. The projected deficit for this fiscal year in Ontario is $13.5 billion. Québec‘s projected deficit is $13.6 billion. British Columbia‘s deficit is projected at $11.9 billion, and even Alberta expects a deficit of $6.4 billion.
Advocacy Within These Federal Guardrails
Government support is limited everywhere, and at REALPAC, we are refocusing on low or no-cost solutions to keep the dialogue going with governments, especially leading up to the spring economic statement. There is still very much that can be accomplished within those guardrails.
About the Author:
Michael is the Chief Executive Officer at REALPAC, with overall responsibility for the success of the organization and the industry, including events, government relations, research, standards and best practice, and education. Michael was formerly a commercial real estate lawyer and partner, and the real estate practice group leader, at a major Canadian law firm.