The centrist Liberals began the election campaign in third place – however, in a shock result, they now command a majority.
Party leader Justin Trudeau said that Canadians had voted for real change.
Mr Trudeau – who is a vocal supporter of gay and trans community – promised to increase LGBT if elected to office.
His campaign pledges included plans to introduce legislation ensuring that trans rights are fully protected and end the discriminatory ban that prevents men who have had sex with men from donating blood.
They also promised to ensure that Canada’s diversity is reflected in government – that means including LGBT individuals.
Mr Trudeau campaigned on a promise of change, urging voters ahead of the polling day to “come together as a country”.
His charismatic father, Pierre, is considered the “father of modern Canada”.
Addressing his supporters after the result was announced, Mr Trudeau said that Canadians “sent a clear message tonight – it’s time for a change”.
“We beat fear with hope, we beat cynicism with hard work. Most of all we defeated the idea that Canadians should be satisfied with less.
“This is what positive politics can do.”
Incumbent Conservative Prime Minister Stephen Harper graciously accepted defeat – confirming he will step down as leader.
Mr Harper said he had already congratulated the country’s new leader – confirming the Conservatives would accept the results “without hesitation”.
However, few had predicted a Liberal victory on this scale, which comes after the longest campaign in Canada’s history.
They look set to win 184 seats in parliament – a huge increase from only 36 that they held after suffering their worst-ever election result in 2011.
They also made history be becoming the first ever party to climb from third place in parliament to a majority in one election.
Meanwhile, left New Democratic Party (NDP) is on course to win 44 seats, less than half the number they held in the outgoing parliament.
Canada introduced same-sex marriage back in 2005, and has been one of the world’s most progressive countries on LGBT rights.
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