Hey everyone! 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
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?
Absolute Mortgage Experts specializes in securing CMHC-insured commercial financing. Our expertise in direct CMHC applications helps borrowers access significantly lower interest rates and reduced borrowing costs, maximizing your commercial investment’s profitability.
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)