What a U.S. Trade War Could Mean for Your Mortgage (and Your Wallet!)

Let’s be real—when we hear “trade war” and “GDP decline,” it’s easy to tune out. But before your eyes glaze over, let’s break it down in a way that actually matters to you—your home, your mortgage, and your financial future.

What’s Going On?

The Bank of Canada just issued a warning: If trade tensions with the U.S. keep dragging on, our economy could take a permanent hit. That’s a big deal because nearly 75% of Canadian exports go to the U.S.—so if tariffs get slapped on our goods, businesses suffer, jobs get shaky, and prices go up.

And when the economy slows down, guess what? The housing market—and your mortgage—aren’t far behind.

How Does This Affect You?

Here’s where it gets personal:

1️⃣ Interest Rates Might Keep Dropping (But Not Forever)

The Bank of Canada just cut interest rates again to help keep the economy steady, making borrowing cheaper. That’s great news if you’re looking to buy a home or refinance, since lower rates = lower monthly payments. But these cuts won’t last forever, and uncertainty could mean rates swing back up later.

What You Can Do:

• If you’re thinking about buying, now might be a smart time to lock in a low rate before things change.

• If you have a mortgage renewal coming up, it’s worth exploring early renewal options before rates shift.

2️⃣ Inflation Could Make Everyday Life More Expensive

If tariffs start pushing up import costs, the price of groceries, gas, and household essentials could rise. And if businesses have to pay more for materials, they might pass those costs onto consumers (that’s us!).

What You Can Do:

• Build a financial cushion in case living costs go up. Even an extra $50-$100 a month in savings can help.

• Consider locking in a fixed-rate mortgage to protect yourself from potential rate hikes down the road.

3️⃣ The Housing Market Could Shift

If economic uncertainty lingers, it could slow down home sales and impact property values. This doesn’t mean a crash, but it does mean the market could become more competitive—which could work in your favor as a buyer.

What You Can Do:

• If you’re selling, be prepared for a longer selling process or more competitive pricing.

• If you’re buying, you might find better deals in certain areas—but you’ll need to act fast while rates are low.

Final Thoughts

A trade war sounds like something out of a political debate, but it has real effects on your home, your mortgage, and your daily budget. While we can’t predict exactly how things will play out, being prepared and proactive puts you in control.

If you’re feeling unsure about what this means for your mortgage—or if now is the right time to buy, refinance, or renew—let’s chat! I’m here to help you navigate the changes and find the best path forward for your financial future.

📩 Reach out today and let’s make sure you’re in the best position possible, no matter what happens next!