The Canadians scored early and scored often to run their record to 2-0 in Group B play at the 2010 Vancouver Paralympic Games.
For Sweden, it was the second consecutive defeat following a 2-1 reverse against Norway on Saturday.
Canadian forward Brad Bowden scored for the defending gold medalists just over a minute into the game at the University of British Columbia's Thunderbird Arena as Canada peppered Swedish goalie Ulf Nilsson for 14 shots in the opening period for a 5-0 lead.
Greg Westlake was the individual star for the host, scoring three times for a tournament-leading five goals.
Westlake, who had both of his under-developed feet amputated as a baby, said he had extra motivation as hockey legend Marc Messier phoned him before the game.
"He is such a great guy and he wished us luck. He said he was watching us and he wanted to us to make him proud," said Westlake.
In the morning game, second-seeded Norway needed two third-period goals from Kjell Vidar Royne to get by an improving Italian team 2-1.
Steve Cash, goaltender for the top-seeded U.S.A., registered his second consecutive shutout in a 3-0 victory over the Czech Republic. With the win, the reigning world champion sealed a spot in the semi-final.