April 7, 2025
If you think tariffs only affect the price of goods at the store, think again. Tariffs — especially on materials like lumber, steel, and electronics — directly impact the housing market and your ability to qualify for a mortgage. When builders pay more to construct homes, they pass those costs on to you. That means fewer affordable homes on the market and higher prices, especially in the entry-level category where most first-time buyers are shopping.
But it doesn’t stop there. Rising construction and material costs contribute to inflation, and when inflation stays high, the Bank of Canada keeps interest rates higher. That means higher mortgage rates and tougher qualifying rules — including stricter stress tests. If you’re already close to the edge of qualifying, you might get priced out altogether. And with no guarantee that rates will drop significantly anytime soon, waiting could mean missing your window completely.
Here’s the reality: tariffs may seem like a political or trade issue, but they hit where it hurts — your ability to buy a home. It’s already harder to get in, and future lending policy could make it even more difficult. If you’re thinking about homeownership, it’s smarter to act now. Get pre-approved, lock in a rate, and take advantage of current lending options while they’re still available. Waiting for things to “calm down” could cost you your shot.
Source: Absolute Mortgage Team