What Canada’s Tariffs Mean for Calgary Homebuyers and Investors
Understanding the Big Picture: Tariffs and Your Mortgage
There’s been a lot of buzz lately about tariffs, extra taxes placed on goods that come into a country. You might have seen stories on the news about international trade fights or rising prices. While it might sound like something that only affects big businesses, these changes are hitting much closer to home, right here in Calgary’s housing market.
The global economy is going through a few shakeups, but here in Calgary, things are holding steady. In fact, something unexpected is happening: mortgage rates are dropping. That’s a big deal if you’re thinking about buying your first home, fixing up a property, or investing in real estate.
So why are mortgage rates falling when materials are getting more expensive? What does this mean for your monthly payments or your investment plans?
The truth is, the biggest signals don’t always come from the headlines, they come from the bond market. Bonds help set the tone for mortgage rates, and right now, they’re pointing to some serious opportunities for borrowers.
Let’s break this all down together, so you know what’s happening, what it means for your next move, and how to make the most of it.
Quick Navigation
What Are Tariffs, and Why Do They Matter?
A tariff is like a tax that countries put on goods that come in from somewhere else. The U.S. recently put new tariffs on items like steel, aluminum, and cars from other countries. In return, Canada responded by adding its own tariffs, about $60 billion worth, on things from the U.S.
That’s caused prices to go up on some items, especially materials used to build homes. Things like pipes, nails, metal beams, and even some tools are now more expensive. Builders are starting to feel the pressure, and those higher costs can eventually affect people buying or fixing homes.
Even smaller items, like doorknobs or kitchen hardware, can be affected. It all adds up, especially if you’re planning a big home project.
Why This Matters to Buyers and Investors in Calgary
Normally, when prices go up like this, the Bank of Canada might raise interest rates to slow things down. But this time, something different is happening. Instead of rates going up, they’re going down.
That’s because investors around the world are feeling nervous. When that happens, they move their money to safer places, like Canadian government bonds. This drives up the price of bonds and lowers their yield (which is like the interest they pay).
And here’s the key part: when bond yields go down, mortgage rates usually go down too.
Right now, the 5-year Government of Canada bond yield is around 2.4%, one of the lowest points in three years. Because of that, 5-year fixed mortgage rates have also dropped:
As low as 3.89% for insured mortgages
Just over 4.19% for uninsured mortgages
That means even though building might cost more, borrowing money to buy a home is cheaper. And that’s something you don’t see every day.
If you’re planning to buy soon or refinance your current mortgage, this could mean lower monthly payments and more room in your budget. It might even help you qualify for a better home.
Calgary’s Housing Market Is Staying Strong
Even with all the global news, Calgary’s real estate market hasn’t slowed down. In fact:
Home prices are rising at a steady pace
There are lots of listings available
Homes are still selling well
Builders are still working
More people are moving to Calgary from other cities
So why is the market doing well? One big reason is that low mortgage rates are helping more people qualify for home loans. That means more families can buy, and investors can grow their portfolios.
Also, Calgary’s homes are still more affordable compared to cities like Vancouver or Toronto. People are noticing—and moving here because they get more home for their money.
If you’re investing, that means a better chance of getting good rental income and long-term value. If you’re buying your first home, it means more options without blowing your budget.
Here’s What You Can Do Now
Even with all this talk of trade wars and global worries, Calgary is still one of the best places in Canada to buy real estate. Prices are steady, rates are low, and the market is holding strong.
If you’ve been thinking about making a move, whether it’s your first home, refinancing a rental, or investing in property, this might be the time to act.
When mortgage rates are low, every dollar goes further. You can afford more, save on monthly payments, and plan with more confidence.
And you don’t have to figure it all out on your own. That’s what we’re here for.
Let’s chat. Book a call with a Calgary mortgage expert today.
FAQs
What are tariffs and how do they affect homebuyers?
Tariffs are taxes on goods from other countries. When materials get more expensive, building or fixing homes can cost more.
What are bond yields and why do they matter?
Bond yields help decide mortgage rates. When they go down, mortgage rates often go down too—meaning you could save money.
Should I lock in a mortgage rate now?
Yes. Rates are low, and locking one in now can protect you if they go up later.
Where can I find info about interest rates and bonds?
You can visit the Bank of Canada or Ratehub for the latest updates.
Is now a good time to invest in Calgary real estate?
Definitely. Calgary is still affordable compared to other big cities, and demand is growing. Add in today’s low mortgage rates, and it’s a smart time to invest.
