Let’s Talk About Canada Tariffs and Mortgage Rates – What You Need to Know

Let’s Talk About Canada Tariffs and Mortgage Rates – What You Need to Know

I wanted to take a moment to break down how Canada tariffs can impact mortgage rates here in Canada. I know the economy can feel like a rollercoaster sometimes, but my job is to work for YOU—not the lenders. That means I’ll always give you the same advice I would give to my closest friends and family. So, let’s keep it simple.

How Tariffs Can Impact Mortgage Rates

🔹 Tariffs Increase Costs → When the cost of goods (like lumber and steel) goes up, it can lead to inflation.

🔹 Inflation Triggers Higher Interest Rates → The Bank of Canada (BoC) may raise rates to keep inflation under control.

🔹 Bond Yields React → Higher inflation expectations push bond yields up, which impacts fixed mortgage rates.

🔹 Market Uncertainty & Economic Volatility → If tariffs slow economic growth, the BoC might lower rates to stimulate the economy.

Fixed vs. Variable – What Should You Consider?

✅ Fixed Rate = Stability

Your payments stay the same, with no risk of increase.

A good choice if you prefer predictability or expect rates to rise.

✅ Variable Rate = Potential Savings, But Some Risk

Your payments fluctuate with BoC rate changes.

Historically lower cost, but can be riskier if rates go up.

Key Risk Factors to Think About:

✔️ Comfort level with payment fluctuations
✔️ Your time horizon (short-term flexibility vs. long-term stability)
✔️ Economic outlook (inflation trends, BoC policy direction)

Bottom Line:

If tariffs drive inflation and rate hikes, a fixed rate may offer more security. But if the economy slows, variable rates could remain competitive. The right choice depends on your personal risk tolerance, and I’m always here to help you navigate it!

Let’s chat if you have any questions! 😊

Let’s Talk About Canada Tariffs and Mortgage Rates – What You Need to Know

Let’s Talk About Canada Tariffs and Mortgage Rates – What You Need to Know