Trump’s Tariffs and Calgary’s Mortgage Market: What You Need to Know

As we settle into the first months of the Trump presidency, one unexpected side effect has emerged for Canadian homeowners and buyers: lower fixed mortgage rates. According to a recent article by Robert McLister in the Calgary Herald (March 6, 2025), Trump’s tariff-driven trade policies have rattled the bond markets, pulling down yields and, in turn, reducing fixed mortgage rates.

For those renewing their mortgages or looking to buy, this is a welcome development. Lower interest rates can significantly reduce monthly payments, making homeownership more accessible and easing the financial burden for existing homeowners facing renewal. In fact, CIBC recently made headlines as the first of the Big Six banks to drop advertised fixed rates below 4% since April 2022, slashing rates by up to 50 basis points. Meanwhile, online brokers such as Butler Mortgage and Citadel Mortgages are offering insured five-year fixed rates as low as 3.84%, further intensifying competition in the lending market.

The Good News: Lower Mortgage Rates

If you’re in the market for a home or coming up for renewal, these rate drops could work in your favor. With fixed mortgage rates hitting their lowest levels in years, now might be an opportune time to lock in a competitive rate, particularly if you favor stability in your payments. Variable rates, too, remain a point of discussion, as market indicators suggest there’s a strong chance the Bank of Canada will cut rates again soon.

The Bad News: Economic Uncertainty

However, while lower rates are a positive development, they come with a caveat: economic instability. A trade war triggered by U.S. tariffs could hurt Canadian businesses and lead to job losses, making mortgage affordability less about interest rates and more about job security. As McLister wittily puts it, saving on interest is like getting a discount on a coffin when you’re already dead.

What This Means for Calgary Homebuyers and Homeowners

For buyers, this is a chance to secure a lower-cost mortgage, but it’s crucial to work with a knowledgeable REALTOR® and mortgage professional to ensure you’re making a financially sound decision. For homeowners renewing their mortgages, now is the time to explore lender options beyond the big banks, as smaller lenders and mortgage brokers may offer more competitive rates.

Calgary’s real estate market has seen its ups and downs, but one constant remains: making informed decisions is key. If you’re considering buying, selling, or refinancing, let’s discuss how these market shifts impact your real estate goals. Reach out today, and let’s navigate this ever-changing landscape together.