As hopes of a Canada-US deal rise, here’s what’s at stake for housing
Prospects for a 2027 recovery, some mortgage professionals say, could hinge massively on whether tariff tensions ease.
And Canada Mortgage and Housing Corporation (CMHC) has highlighted how the trade war is worsening the mortgage strain for many borrowers in tariff-impacted parts of the country such as Southern Ontario, which has borne the brunt of US levies on steel, aluminum, automotive vehicles and parts, and agricultural products.
With homebuilding also taking a hit, the national housing agency’s deputy chief economist Aled ab Iorwerth (pictured top) told Canadian Mortgage Professional a swift end to the trade war could potentially improve the currently dire construction outlook.
“I’m a little bit concerned on the housing supply situation that higher interest rates are affecting developers,” he said. “Now on that side, if the situation were resolved, then maybe developers would have a lot more confidence in home construction.
“From a long-term affordability [perspective], that would be positive. I think if the overall uncertainty lowered… it would give renewed confidence to people who want to go out and buy a home. If you knew the dispute was over, I think that greater certainty would help the overall economy.”
