Posted in The initial market response to the rapidly escalating trade war with the US has led to 3 immediate consequences; a falling dollar, a declining stock market, and plummeting bond yields. What does this mean for mortgages?
Given the lack of a functioning federal government in Canada, combined with the short-sighted response to levy countervailing tariffs, this will take quite some time to unwind. Canada will head deeper into a recession, and as a result, mortgage rates (including the prime rate) will drop much quicker than originally anticipated in 2025. Using BMO as an example, their chief economist is now forecasting 6 additional prime rate cuts in 2025 (a further 1.5%).
If you are purchasing, refinancing, or renewing in the next few months, I'd strongly consider going variable at this point, as you'll have buyer's remorse sooner rather than later with a fixed rate.
Many of the big banks are currently offering terrible discounts vs the prime rate on variable mortgage options, but we have some terrific discounts still available that will save you $$. Call (613)394-5810 today, as our advice (and service) are free!
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