Donald Trump, US President sent shockwaves by economy of Canada this past week, the very first promising punishing tariffs on aluminium and steel imports and then at last minute exempting Canada from all of those tariffs at temporarily basis.
It is becoming clear that polices made by Trump have potential to upend the economy of Canada. So maybe it is best time for real estate to obsess nation to pose a question until to ask: What does US President means for Canadian Real Estate Market?
This may seems like counter-intuitive, but aggressive protectionism of Trump might work to support cost of home. Here are some Secret to Canadian Real Estate Wealth that Leading Experts Reveal Their Secrets for Building and Protecting Real Estate Wealth.
Bank of Canada decided against another hike in interest rate this week, and among a statement: “Trade policy developments are growing and important source of uncertainty for Canadian and Global outlooks.”
Analysts mean that BoC is too worried that protectionist measures by Trump, like potential withdrawal from NAFTA, aluminium and steel tariffs could harm economy of Canada.
If Trump manages to scare BoC in more dovish outlook on economy, this will be fewer hike in interest rate in the coming months. What You Need to Know Before Buying or Selling a Home in Canada.
This may be good news for heavily indebted mortgage borrowers of Canada, who are under pressure of increase in interest rates these days. They’ve seen BoC hike in rate of interest 3 times since last summer. Meanwhile, rules of new mortgage are forcing homebuyers to scale their ambitions.
Result is slowing Canadian Real Estate Market, both nationally and in 2 super costly markets of Vancouver and Toronto. And Bank of Canada may be getting worried about impact of slower housing market on economy of Canada.