Since Donald Trump’s election and proposed tariffs on Canadian goods, bond yields have been climbing as markets anticipate stronger U.S. economic growth. Higher bond yields directly influence Canadian fixed mortgage rates, causing them to increase. But how will Trump’s proposed tariffs affect your mortgage rate in Edmonton? Here is what you need to know.

What Do Tariffs Have to Do with Mortgage Rates?

Trump’s proposed high tariffs on Canadian and Mexican goods could significantly impact the Canadian economy. For the U.S., tariffs are inflationary, increasing costs for consumers. For Canada, tariffs could severely hurt trade, manufacturing, and Alberta’s oil and gas industry. These economic pressures could ripple into mortgage rates, with lenders adjusting for potential risks.

How Could the Proposed Tariffs Impact Canadian Homebuyers?

If tariffs are implemented, rising fixed mortgage rates could make borrowing more expensive for Canadian homebuyers. Higher rates could mean larger monthly payments or reduced affordability for those looking to enter the market.

What Should You Do About Your Mortgage?

For those with upcoming renewals or plans to buy a home, understanding how these economic changes might impact you is critical. Exploring variable-rate options or locking in current fixed rates could help protect against future increases. Please reach out at 780-720-2490 to find out how this will impact your homebuyer journey.

If you’re looking to get pre-approved for a mortgage to buy a property in Edmonton, fill out my online application. I’m here to help you every step of the way.

About Jason Scott, Edmonton Mortgage Broker

Looking for a personalized mortgage solution? As an Edmonton Mortgage Associate, I’ll be your trusted partner who will help you get the right mortgage for your family home or Investment property. I’m Jason Scott, and I’ll be your Mortgage Broker in Edmonton.