Keith Uthe

Mortgage Associate

Hi PROBUS,

With ongoing market uncertainty, staying informed is more important than ever—especially when it comes to your mortgage and homeownership goals. Recent trade tensions between Canada and the U.S. have created financial ripple effects that could impact mortgage rates, home prices, and affordability. Here’s what you need to know:

What’s Happening & Why It Matters

The U.S. announced that it would impose tariffs on certain Canadian goods, which prompted retaliatory measures from our government. A temporary 30-day suspension is in place, but uncertainty remains about what’s next. If additional tariffs go into effect, we could see:

✔ Higher Costs for Homes & Renovations – Many building materials are imported from the U.S., meaning increased costs could slow new home construction and drive up renovation expenses.

✔ Mortgage Affordability Shifts – The Bank of Canada recently cut interest rates for the sixth consecutive time, but inflation concerns from tariffs might pressure the Bank of Canada to halt or reverse rate cuts. Others argue that economic slowdowns resulting from trade disruptions could lead to further rate reductions.

✔ Changes in Buyer & Homeowner Decisions – Some buyers may rush to secure lower mortgage rates, while others might wait for economic clarity. Regional housing markets could see different impacts based on affordability and demand.

What This Means for You

➡ If you have a variable-rate mortgage: Recent rate cuts have likely lowered your payments, but if inflation rises, further cuts may stall—or even reverse. On the other hand, if we do see a trade war this could result in further rate cuts by the Bank of Canada.

➡ If you have a fixed-rate mortgage: This could be a great time to explore refinancing before market conditions shift.

➡ If you’re planning to buy: Rising construction costs could limit new housing supply and push prices higher in the long term. Acting sooner could help you secure a better mortgage rate and terms.

Let’s Discuss

With ongoing uncertainty around tariffs and political shifts in Canada, it’s natural to have concerns. But don’t worry—we’ve successfully navigated market volatility before, and I’m here to help you manage these changes. The best course of action is to schedule a meeting so we can tailor a strategy to your unique situation. Whether you’re buying, renewing, or refinancing, now is a great time to review your options and create a plan—getting advice early is key.

Let’s connect for a quick chat—call or email me today!