Trump’s Tariffs: Impact on Canada’s Economy

President Trump’s latest rounds of tariffs have raised the duty on many Canadian exports from 25% to 35%. Key sectors affected include manufacturing, lumber, automotive, minerals, and agriculture, with ripple effects for supply chains and consumer prices on both sides of the border. The tariffs are expected to slow growth, increase business costs, and threaten thousands of Canadian jobs, even as exemptions under USMCA still protect about 85% of North American trade. At the same time, the Canadian dollar recently hit a four-month low due to oil price drops and investor anxiety over trade negotiations.

Mark Carney’s Response: Policy and Rhetoric

Prime Minister Carney has publicly condemned the tariffs as unjustified, expressing deep disappointment and affirming that Canada will “respond with intention and strength.” In recent months, Carney has balanced retaliation, such as maintaining or imposing counter-tariffs on select U.S. products, with pragmatic efforts to avoid further escalation. He has made clear that, while Canada will stand firm against U.S. pressure, the priority is now shifting to reduce Canada’s economic reliance on the U.S. by encouraging Canadian consumers and businesses to “buy Canadian” and to expand trade globally. Recent government support and incentives aim to help affected companies develop alternative products and find new international markets.

Canadian Public Sentiment

Public opinion has hardened significantly: the majority of Canadians support both government pushback against U.S. tariffs and boycotts of American goods and travel. Nationalism and pride in Canadian identity have surged, with mounting calls to diversify Canada’s economy away from U.S. dependence. This has also bolstered Carney’s position, with recent polls showing him as the leader most trusted to manage the economic crisis.

Shifting Political Dynamics

The trade war has galvanized Canadian politics, and support for Carney’s Liberal Party has strengthened, while the Conservatives, under Pierre Poilievre, have lost momentum amid criticism of being too accommodating to Trump. Other parties, including the NDP and the Bloc Québécois, have seen a decline in support. The recent economic crisis has also encouraged interprovincial unity and a renewed push to remove internal trade barriers.

Forward Outlook and What’s Next

Carney has warned that “dark days” are possible if the trade conflict drags on, but insists that a clear national strategy, prioritizing what Canada can control, will be essential. Talks with the U.S. remain tense, with no clear path to a swift resolution. Carney’s government is using the moment to pivot toward more diversified trade, invest in domestic industries, and encourage Canadian-made alternatives for both businesses and consumers.

In summary, the situation remains volatile. Ottawa’s resolute stance against U.S. tariffs under Mark Carney is reshaping not only Canada’s economy but also its political and social fabric, ensuring that this issue will define his early tenure as Prime Minister.

As tariffs and markets shift, your mortgage shouldn’t add stress.

Cannect offers refinancing, renewal, and debt solutions to help you maintain financial security.

Call us at 416-766-9000 today.

For more info, watch MAKE MONEY COUNT

Last updated on 01/10/2025

The post Canada’s PM, Mark Carney’s Challenge: against Trump’s Tariffs first appeared on MorcanCanada.

For those seeking a mortgage or refinancing options, especially through services like Cannect, understanding how a rising HPI affects mortgage qualification is crucial.

What Is the House Price Index?

The HPI tracks the average price changes of residential properties, adjusting for factors like home type and location. Rising values in the HPI indicate increasing home prices, which can directly impact how much borrowers need to finance.

How Does a Rising HPI Affect Mortgage Qualification?

1. Higher Property Values Mean Larger Loan Amounts

When home prices increase, the purchase price of homes also rises. This typically means borrowers must qualify for larger loan amounts. For many, this translates into assessing their income, debt-to-income ratio, and creditworthiness more carefully to meet lender requirements.

2. Impact on Down Payment Requirements

While down payments are based on the home price, a higher HPI means buyers may need to save more upfront, especially in competitive markets. Larger down payments can strengthen mortgage applications by lowering the loan-to-value ratio, a factor lenders consider when evaluating risk.

3. Stricter Lending Criteria

In response to rising home prices, lenders may adjust their qualification criteria to manage risk. This could mean higher credit score minimums, stricter debt-to-income limits, or more rigorous documentation. For borrowers working with Cannect.ca’s large lender network, access to diverse mortgage options can help navigate these challenges.

4. Rate Fluctuations and Affordability

Rising prices may influence mortgage interest rates and overall affordability. Cannect.ca monitors market conditions closely, providing clients with up-to-date advice to secure the best rates suited to their financial situations.

How We Support Homebuyers Amid Rising House Prices

Cannect, as Canada’s largest lender network, understands the shifting real estate landscape. Their customized mortgage solutions and expert advice help buyers:

• Assess qualification criteria realistically based on current home values.
• Explore a range of mortgage products that fit varying budgets and risk profiles.
• Benefit from professional guidance on down payment strategies and approval processes.
• Stay informed on market trends and how they affect borrowing power.

Conclusion

A rising House Price Index presents both challenges and opportunities for homebuyers. Understanding its impact on mortgage qualification is essential to planning a successful purchase. Cannect expertise and a vast lender network make it easier to find tailored mortgage solutions that align with current market conditions.

Ready to navigate rising home prices with confidence?

Connect with Cannect today to explore your mortgage options and get personalized support for your home financing journey.

The post Rising House Price Index and Its Effect on Mortgage first appeared on MorcanCanada.

What is a Real Estate Appraisal?

A real estate appraisal is a professional, unbiased evaluation of a property’s market value, typically conducted by a licensed appraiser. It plays a vital role in securing mortgage loan approvals, determining home refinance interest rates, and ensuring sound decisions for both homeowners and lenders.

In Canada’s volatile market, where Canadian mortgage rates and current mortgage rates fluctuate it’s more important than ever to understand how appraisals influence your mortgage and refinance strategies.

Why Real Estate Appraisals Matter in 2025

1) Securing a Mortgage or Refinance Loan

Lenders rely on appraisals to determine how much they’re willing to lend. Whether you’re applying for a fixed rate mortgage, reverse mortgage, or home mortgage refinance loan, your appraisal directly impacts approval terms and refinance mortgage rates.

2) Protecting Investments and Mitigating Risk

Accurate valuations help safeguard against investment risk, especially for those considering investment mortgage loan products. Lenders and borrowers alike rely on appraisals to manage investment and risk the borrowers may encounter, particularly in slow risk investments tied to real estate.

3) Maximizing Home Equity and Financing

Understanding your property’s value enables smarter decisions around home equity line, home equity credit, home equity loan, and home equity financing options. Appraisals influence your home equity borrowing limits and can unlock better mortgage line of credit rates.

How Appraisals Affect Refinance and Renewal Decisions

If you’re considering a mortgage renewal or a mortgage loan refinance, the appraisal will inform whether you can negotiate better mortgage renewal rate terms or proceed to mortgage renewal early. A strong valuation may also enhance your refinance estimate when looking to access more favorable refinance home loan rates.

When an Appraisal is Required?

• Applying for a home mortgage refinance
  
• Seeking a refinance home mortgage loans option
  
• Exploring a refinance house loan for investment properties
  
• Accessing equity credit for renovations or debt consolidation

According to the Canadian Real Estate Association (CREA), the national average home price in June 2025 is approximately $710,000, reflecting slight growth from 2024. Urban centers like Toronto and Vancouver continue to lead, affecting Canadian mortgage rates and lender confidence.

These’ll directly influence home refinance opportunities and strategies for calculating mortgage refinance effectively.

The Link Between Appraisal, Equity, and Investment Strategy

Your appraisal sets the baseline for how much equity you can access, whether through a home equity loan, home equity credit, or investment mortgage lenders financing future opportunities. It also informs mitigation strategies for lenders assessing risk.

For investors, knowing your property’s accurate value helps align with the right investment mortgage lenders, ensuring you don’t overextend in a market that demands prudence.

Work with B lenders for Appraisal-Driven Mortgage Success

At Cannect, we specialize in turning complex appraisal results into actionable mortgage strategies. From refinance home loan advice to unlocking the best mortgage rates, we tailor solutions that fit your unique financial goals.

Contact Cannect today to discover how your real estate appraisal can lead to smarter, more profitable decisions on your mortgage or refinance journey.

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The post How Real Estate Appraisal Unlock Better Mortgage and Refinance Rates first appeared on MorcanCanada.

What Is a Reverse Mortgage?

A reverse mortgage lets homeowners aged 55 and older convert part of their home equity into cash, without selling their home or making monthly payments. Unlike traditional mortgages, where borrowers pay the lender, reverse mortgages flip the model, the lender provides funds to the homeowner. Repayment kicks in only when the homeowner sells the property, moves out, or passes away.

How Does a Reverse Mortgage Work?

The borrower receives tax-free funds, either as a lump sum, fixed monthly payments, or a line of credit, while retaining full ownership of their property. Over time, the loan balance increases as interest accrues, but no repayment is required until a triggering event occurs. The most common trigger? Selling the home or death of the borrower.

Interest rates for reverse mortgages in Canada are higher than traditional mortgages, and as of July 2025, average rates hover around 7.5–8%, depending on the lender. This means equity erosion can happen faster than expected, especially if property values stagnate.

What is Reverse Mortgage Eligibility?

In Canada, to be eligible for a reverse mortgage, you generally must be a Canadian homeowner aged 55 or older, and the property must be your primary residence. If you have a spouse, both of you typically need to be at least 55 and included on the application. The amount you can qualify for depends on factors such as your age, the appraised value of your home, its location, and the property type. Unlike traditional loans, reverse mortgages usually have flexible qualification requirements as they don’t typically require an income test or a high credit score, making them accessible to retirees on a fixed income.

When is a Reverse Mortgage Due?

A reverse mortgage loan typically becomes due and payable when certain events occur:

• The homeowner sells the home.
  
• The last borrower on the mortgage dies.
  
• The last borrower permanently moves out of the home (e.g., into a long-term care facility) for a period of at least six months.
  
• The homeowner defaults on their obligations, such as failing to pay property taxes, maintain insurance, or keep the home in good repair.

Pros and Cons

Like any financial product, reverse mortgages have their advantages and disadvantages:

Pros:

• Access to Tax-Free Cash: You can unlock the equity in your home and receive tax-free funds without having to sell or move.
  
• No Monthly Payments: This is a significant benefit for retirees on fixed incomes, as it frees up cash flow.
  
• Retain Home Ownership: You continue to own your home and can live in it for as long as you wish, provided you meet the loan terms.
  
• Flexible Use of Funds: The money can be used for any purpose, such as home renovations, debt consolidation, healthcare expenses, or supplementing retirement income.
  
• No Income or Credit Score Requirements: This makes it easier to qualify compared to other lending options.

Cons:

• Higher Interest Rates: Reverse mortgages typically have higher interest rates compared to traditional mortgages or Home Equity Lines of Credit (HELOCs), as the lender takes on more risk by not requiring monthly payments.
  
• Accumulating Debt and Shrinking Equity: As interest builds up and gets added to the loan, your balance grows and your share of home equity shrinks over time.
  
• Impact on Inheritance: A growing loan balance can eat into your home’s equity, leaving your heirs with less or sometimes nothing to inherit.
  
• Additional Costs: There are often upfront costs, such as appraisal fees, application fees, and legal fees.
  
• Prepayment Penalties: You may incur fees if you choose to repay the loan early.

HELOC vs. Reverse Mortgage: What Should Retirees Choose?

A Home Equity Line of Credit (HELOC) is often the first recommendation, lower interest, flexible repayment, and fewer long-term costs. But here’s the catch: a HELOC requires proof of income and good credit. That’s where many retirees fall short.

If you’re eligible, a HELOC may be a smarter, more transparent option. But for homeowners with fixed incomes or poor credit, a reverse mortgage may be the only viable path to liquidity.

Conclusion

With Canada’s real estate cooling and the cost of living still high in mid-2025, reverse mortgages are a tempting, yet complex solution. The key lies in understanding your long-term financial needs and what you’re willing to trade, equity for stability or inheritance for independence.

Looking for a clearer way to unlock your home’s equity?
At Cannect, we help you explore all your options, from reverse mortgages to HELOCs and refinancing strategies. Our expert advisors provide transparent guidance based on real-time rates and your unique needs.

The post The Hidden Truth About Reverse Mortgage, Every Retiree Should Know first appeared on MorcanCanada.

Let’s explore what a home equity loan is, how it’s used, how it compares to other borrowing options, and the common mistakes you’ll want to avoid along the way.

What Is a Home Equity Loan?

A home equity loan is a type of secured loan that allows you to borrow money using the equity in your home as collateral. Equity is the portion of your home that you actually own outright—calculated by subtracting your outstanding mortgage balance from the current market value of your property. As you pay down your mortgage and as your home increases in value, your equity grows.

With a home equity loan, you’re borrowing against this equity. The loan is typically issued as a lump sum with a fixed interest rate and repayment schedule, making it ideal for one-time, large-scale expenses. The amount you can borrow usually ranges up to 80% of your home’s appraised value, minus the balance remaining on your mortgage.

How Is a Home Equity Loan Related to Your Mortgage?

Many Canadians confuse a home equity loan with a second mortgage—and for good reason. In most cases, a home equity loan is a second mortgage, secured against your home just like your original mortgage. However, unlike a traditional mortgage which helps you buy a property, a home equity loan allows you to unlock the value of a home you already own.

It’s important to understand that taking out a home equity loan means you’re increasing your overall debt, even if the payments are separate from your original mortgage. This is why lenders assess your loan-to-value ratio (LTV), credit score, and debt servicing ratios before approving the loan.

Common Uses of a Home Equity Loan

Canadians often turn to home equity financing when they need access to substantial funds at a relatively low interest rate. Popular uses include:

• Home renovations or upgrades, which can increase property value
  
• Debt consolidation, especially to pay off high-interest credit cards or personal loans
  
• Funding education expenses or major life events
  
• Covering emergency medical costs or supporting a business venture
  

Since the interest rates on home equity loans in Canada are typically lower than unsecured loans or credit cards, it can be a cost-effective borrowing option—provided it’s used responsibly.

Alternative Options to a Home Equity Loan

While a home equity loan offers structure and predictability, it’s not the only option for tapping into your home’s value. A popular alternative is the Home Equity Line of Credit (HELOC). Unlike a lump-sum loan, a HELOC operates more like a credit card—allowing you to borrow as needed, repay, and borrow again within your approved limit.

Another option is mortgage refinancing, which involves breaking your current mortgage and replacing it with a new, larger one—using the difference to access your equity. This can be ideal if current interest rates are lower than when you originally locked in your mortgage.

For smaller financial needs or short-term goals, unsecured personal loans or low-interest credit cards may suffice, avoiding the risk of securing debt against your home.

Errors to Avoid When Taking a Home Equity Loan

While the appeal of easy access to funds can be tempting, there are several missteps homeowners should avoid when considering a home equity loan.

One major mistake is overestimating your home’s value, which can lead to borrowing more than you can realistically afford to repay. Ensure your home is professionally appraised before applying. Another common error is using the funds for non-essential expenses, such as vacations or luxury items—this is still debt, secured by your home.

It’s also important not to ignore the terms and interest structure of the loan. Many borrowers assume fixed rates are always better, but depending on your repayment horizon, a variable-rate HELOC might save you more in the short term. Lastly, some homeowners overlook the impact of a second mortgage on their credit score and debt servicing ratios, potentially limiting future borrowing options.

Before signing, carefully evaluate the loan fees, repayment penalties, and total cost of borrowing. Comparing lenders can significantly impact the affordability and flexibility of your loan.

Conclusion: Is a Home Equity Loan Right for You?

A home equity loan in Canada can be a valuable financial resource—especially when used strategically to invest in your property or reduce more expensive debt. However, it is not without risks. Since your home is the collateral, failure to meet repayment terms could lead to serious consequences, including foreclosure.

If you’re considering tapping into your home equity, take the time to understand all your options, compare lenders, and assess your long-term financial goals. Whether you choose a fixed home equity loan, a HELOC, or mortgage refinancing, make sure your decision aligns with your income, risk tolerance, and future plans.

With a smart, informed approach, your home equity can become more than just value on paper, it can be a flexible financial tool for growth, stability, and opportunity.

Thinking of tapping into your home equity?

Cannect helps Canadian homeowners unlock the true value of their property, without the guesswork. Whether you’re considering a home equity loan, HELOC, or mortgage refinance, our expert team and real-time tools guide you every step of the way.

Try our Home Equity Calculator now and discover what your home can do for you, securely, smartly, and stress-free

The post How to Use Your Home Equity Loan Wisely in Canada first appeared on MorcanCanada.

Toronto Housing Inventory Hits a 10-Year High

According to analyst Axel Lands, active listings in Toronto have surged past 30,000 units, doubling the 10-year average of 15,000. Traditionally, April is a strong month for home sales in the Greater Toronto Area (GTA). But this year, April sales volume reached its lowest point since 1995 — excluding the pandemic dip.

New listings continue to flow in at average rates, meaning supply keeps rising while demand remains stagnant. This supply-demand mismatch is a major driver behind falling prices and longer days on market.

Why Are Buyers Sitting on the Sidelines?

Even with the Bank of Canada signaling potential interest rate cuts later in 2025, consumer confidence hasn’t bounced back. Several macroeconomic factors are to blame:

• Sticky inflation, especially on essentials like food
  
• Uncertainty around tariffs and international trade
  
• Job market instability
  
• Declining business investment
  

Until these conditions improve, buyers will continue to delay their decisions, hoping for deeper price drops or better economic signals.

Are Toronto Condo Prices at Rock Bottom?

This might surprise you: many Toronto condos are now selling below construction cost, especially micro-units between 300–400 sq ft. These units, once popular with real estate investors, are struggling to attract both renters and end-users.

With more condo developments set to complete by 2026, we’re likely to see continued downward pressure on both prices and rental rates.

Immigration Policy Shift: A Critical Demand Driver at Risk

Immigration has been a major fuel for Canada’s housing demand, especially in urban centers like Toronto. But new federal policies aimed at slowing immigration intake may reduce demand at the worst possible time — just as the market is flooded with inventory.

This could further destabilize pricing, leading to:

• Buyers walking away from deposits
  
• Appraised values lower than purchase prices
  
• Developers initiating legal action to recover losses
  
• Widespread use of blanket appraisals to justify valuations
  

Is There a Price Floor in the Toronto Housing Market?

The big question everyone is asking: Have we hit the bottom yet?

Historically, real estate markets find a floor — a point where sellers simply won’t go lower. But today, when resale prices are lower than the cost to build, we may not have found that floor yet.

We’re not predicting a crash, but we are realistic: a full recovery will take more than a few rate cuts. Structural issues like oversupply, reduced immigration-driven demand, and economic uncertainty need to be addressed first.

What Should Buyers and Investors Do Right Now?

The best move? It depends on your goals:

• If you’re an investor looking to flip a unit in 12 months — now may not be your time.
  
• If you’re a buyer looking for a long-term home and you find a good deal in a buyer-friendly market — this could be an opportunity.

Toronto real estate in 2025 is a buyer’s market in many ways, but it demands strategic thinking and expert advice.

Navigate Toronto’s Shifting Market with Confidence

In a year marked by high inventory and economic uncertainty, making the right real estate move requires more than guesswork — it calls for insights grounded in data and experience.

For those seeking clarity, trusted voices in the industry can make all the difference. Whether you’re eyeing a long-term home or considering your next investment, getting informed is your strongest asset.

Want to dive deeper into smart strategies? Tune in to Make Money Count — where real estate realities meet practical advice.

The post Is Now the Right Time to Buy in Toronto? first appeared on MorcanCanada.

Equity Growth: The Core Advantage

Paying down your mortgage loan while property values appreciate builds valuable home equity—unlike renting, which offers no asset growth. According to Statistics Canada, home equity made up over 40% of household wealth by 2023, and this trend continues. Tapping into home equity financing via a home equity loan, home equity credit, or home equity line can fuel future investments or cover major expenses.

Smarter Mortgage Renewal and Refinance Moves

Many homeowners miss opportunities by blindly accepting their mortgage renewal rate. Choosing to renew a mortgage early or explore a refinance home loan can deliver better terms. Today’s home mortgage refinance and refinance mortgage rates are competitive—analyzing a refinance estimate and calculating mortgage refinance scenarios can mean real savings.

Whether you pursue a home refinance, mortgage loan refinance, or refinance house loan, comparing mortgage and refinance options is critical to financial success.

Homeowners vs. Renters: Who Wins in Wealth?

Homeowners consistently outperform renters in building wealth, thanks to rising home values and access to investment property loans through investment property lenders. Expanding into real estate with investment mortgage loan solutions further multiplies wealth and manages investment and risk the borrowers face.

Professional Financial Guidance is Key

A professional mortgage broker helps you navigate current mortgage rates, fixed rate mortgage options, reverse mortgage solutions, and rates for home loans. By calculating a mortgage loan, improving your credit score, and reviewing your credit report, you position yourself for better offers like lower mortgage line of credit rates and smarter refinancing.

Conclusion: Invest in Your Future

Owning a home remains a slow risk investment that builds real wealth. Strategic use of refinance home loan rates, home refinance interest rates, and managing line of credit interest rates ensures your financial growth.

Ready to optimize your mortgage journey?

Speak with a qualified mortgage broker today and unlock smarter strategies for 2025.

Why Partner with Cannect: Strategic Expertise You Can Trust

At Cannect, we help you navigate mortgage renewal, refinance home mortgage loans, and home equity loans with clarity. From calculating a mortgage loan to understanding mortgage refinance interest rates, we guide you toward smarter, low-risk financial decisions. With us, you’re not just renewing a mortgage—you’re building a strategy for long-term wealth.

For more expert insights on mortgage trends and financial strategies, explore our Make Money Count video series. Your journey toward smarter financial choices begins here.

The post Why Owning a Home Still Builds Wealth in Canada? first appeared on MorcanCanada.

Sales Hit a Wall Amid Uncertainty

CREA Senior Economist Shaun Cathcart noted that while early signs pointed to a strong rebound year, the reality of tariffs and potential economic fallout have sharply reversed expectations. “We’ve gone from a slam dunk rebound year to treading water at best,” Cathcart explained in CREA’s March release.

Sales declines were sharpest in Ontario and British Columbia, though nearly all markets across Canada reported lower activity, with only a few small exceptions. The national average home price dropped 3.7% to $678,331, while the National Composite MLS Home Price Index slipped by 1% in March—marking the steepest month-over-month dip since November 2023.

Inventory on the Rise

Inventory levels climbed in March, with 5.1 months of supply on the market—the highest since the early days of the pandemic. New listings also rose by 3%, pushing the sales-to-new listings ratio down to 45.9%, the lowest level of market balance since February 2009. Though 165,800 properties were listed for sale, this remains slightly below the historical March average of 174,000.

While Ontario and BC continue to experience price softening, other provinces like Quebec, the Prairies, and the East Coast saw prices push higher, reflecting ongoing regional variation in housing dynamics.

Forecasts Revised Amid Volatility

Due to rising uncertainty, CREA significantly downgraded its 2025 and 2026 forecasts. Now, 482,673 residential properties are expected to sell in 2025—essentially flat from 2024 and a dramatic shift from the 8.6% increase projected earlier in January. CREA also forecasts a modest recovery in 2026, with 496,487 transactions, though still falling short of pre-pandemic activity.

The national average home price is now expected to dip 0.3% in 2025 to $687,898, approximately $30,000 lower than CREA’s January forecast. A mild recovery is projected for 2026, with prices rising just 1.2% to $696,074. CREA predicts minor declines in average home prices in Ontario and BC, while other provinces may see gains in the range of 3–5%.

Outlook: A Market in Holding Pattern

As the Bank of Canada weighs further action amid signs of stagflation, and with no clarity yet on how interest rates may move, homebuyers and investors alike remain cautious. The CREA emphasized that “forecasts continue to be subject to unprecedented levels of uncertainty,” underscoring the need for adaptability in a volatile market.

Why choose Cannect?

In today’s uncertain housing market, Cannect offers a faster, smarter way to finance your home. With Canada’s first automated mortgage approval platform, we help you secure the best rates—whether you’re buying, refinancing, or renewing. Trusted, transparent, and built for today’s challenges.

The post Canadian Homeowner: What Falling Home Sales Mean in Canada 2025 first appeared on MorcanCanada.

The Link Between Tariffs, Inflation, and Interest Rates

Tariffs function as a tax on imported goods, making them more expensive for consumers and businesses. When the U.S. raises tariffs, the cost of various products—ranging from electronics to raw materials—goes up. This contributes to inflation in the U.S., prompting the Federal Reserve to reconsider its interest rate policies. Historically, when inflation rises, central banks respond by increasing interest rates to slow down spending and borrowing.

However, the current economic situation is a bit more complex. Despite inflationary concerns, the U.S. economy is also showing signs of slowing down, and markets expect the Federal Reserve to cut rates later this year. These expectations impact global bond markets, including those in Canada, influencing mortgage rates here at home.

How This Affects Canadian Mortgage Rates

In Canada, fixed mortgage rates are heavily tied to government bond yields. When U.S. tariffs create uncertainty in financial markets, investors often seek safer investments, driving down bond yields. This, in turn, typically leads to lower fixed mortgage rates. However, banks and lenders don’t always pass these lower bond yields on to borrowers immediately. Currently, despite falling bond yields, fixed mortgage rates remain higher than expected. This lag means that homeowners and buyers should carefully weigh their options when choosing fixed and variable rates.

Why Variable Rates Still Make Sense

At Cannect, we’ve long advocated for variable-rate mortgages, and the current economic climate reinforces this position. While fixed rates have been slow to drop, variable rates remain flexible and poised to benefit as interest rates decline shortly.
With the Bank of Canada expected to cut rates due to economic pressures, variable-rate mortgage holders could see lower payments sooner than those locked into fixed terms. For borrowers looking for flexibility and potential cost savings, a variable rate remains a strong option.

The Housing Market Response: More Listings, More Uncertainty

Higher mortgage rates in recent years have already strained affordability, leading to a buildup of housing inventory. Now, with the added uncertainty of global economic conditions, more homeowners are listing their properties. This increase in supply could put downward pressure on home prices in some regions, creating opportunities for buyers who have been waiting on the sidelines.

What Should You Do?

If you’re looking to secure a mortgage or refinance, now is the time to explore your options. With economic volatility and potential rate cuts on the horizon, making an informed decision is crucial. At Cannect, we specialize in helping borrowers find the best mortgage solutions with unbiased advice and industry-leading rates.

Want to know how much you can save? Contact us today, and let’s discuss your best mortgage options.

Check out our latest Make Money Count video on how U.S. tariffs are affecting Canada’s economy and housing market!

The post What’s Happening in Canada Now? first appeared on MorcanCanada.

Tariffs Are Impacting the Canadian Housing Market

Rising Construction Costs

Lumber is a crucial material in residential construction, and the newly imposed tariffs are expected to drive up costs significantly. According to the National Association of Home Builders (NAHB), such tariffs typically increase building expenses, leading to higher home prices and discouraging new developments. In Canada, where affordability is already a pressing concern, this could put additional pressure on homebuyers and developers alike.

Housing Affordability at Risk and Challenges for Homebuyers

With the increase in construction costs, homes are becoming more expensive to build. This cost is ultimately passed on to buyers, making housing affordability an even bigger challenge. First-time buyers, in particular, may find it more difficult to enter the market, as mortgage rates and home prices continue to climb. The tariffs further aggravate an already strained market, where demand for affordable housing is high but supply remains limited.

Current Real Estate Trends in Canada

Canadian Housing Market Resilience Amid Economic Challenges

Despite economic challenges, Canada’s real estate market has shown resilience. As of early 2025, the national average home price stood at $670,064, reflecting a 1.6% year-over-year increase. Sales activity has also seen a 3.9% rise compared to the previous year. However, with rising construction costs due to tariffs, industry experts anticipate a potential slowdown in new housing developments, making it even harder for first-time buyers to enter the market.

Regional Real Estate Trends: How Different Provinces Are Affected

The effects of the tariffs vary across provinces. While urban centers like Toronto and Vancouver continue to see rising prices due to high demand, smaller markets may face stagnation. Rural and suburban areas, which rely heavily on new construction, are expected to be hit the hardest as developers struggle with higher costs.

Future Market Outlook

Predictions for Home Prices and Sales

The Canada Mortgage and Housing Corporation (CMHC) predicts that home prices will continue to grow in 2025, driven by increased demand and limited housing supply. Re/Max also forecasts a 5% rise in average residential prices across most Canadian regions. However, these projections could be altered if tariffs significantly impact the cost of new housing, pushing affordability further out of reach for many Canadians.

Potential Government Interventions and Policy Changes

There is growing pressure on the Canadian government to take action. Industry leaders are calling for policy adjustments, including potential subsidies for homebuilders or negotiations to reduce tariffs. Some provinces may introduce tax incentives to counteract the impact on housing prices.

Economic Implications of the Tariffs Beyond Real Estate

The Broader Impact on Canada-U.S. Trade Relations

Beyond the housing sector, the tariffs are part of a broader trade dispute between Canada and the U.S. that could have wider economic consequences. Retaliatory measures from Canada could escalate trade tensions, affecting industries beyond real estate and potentially leading to slower economic growth. Such uncertainty may dampen consumer confidence, further impacting housing demand.

The Role of Inflation and Interest Rates

With construction costs rising, inflation could see an uptick, influencing the Bank of Canada’s monetary policy. If interest rates remain high to combat inflation, mortgage affordability could decline further, reducing overall housing market activity.

Considering Mortgage Refinancing as a Solution in Canada

Given the rising costs and market uncertainties, homeowners looking for financial flexibility might consider mortgage refinancing as an option to lower their monthly payments or access home equity for renovations. Refinancing can help offset increased costs associated with housing price inflation and construction expenses. For more information on mortgage refinancing options, visit Cannect Mortgage Refinancing.

The post Make Homeownership Harder in Canada with new U.S. Tariffs? first appeared on MorcanCanada.