Trade talks between Canada and the U.S. resumed after the Canadian government scrapped the digital services tax.DARRYL DYCK/The Canadian Press
The trade war between the U.S. and Canada is one of the biggest factors weighing on the mortgage market, and the past week has shown there is still plenty of uncertainty around its resolution.
The two countries had set a July 21 deadline to reach an agreement that would end the trade war. But last week, U.S. President Donald Trump walked away from negotiations, saying that Canada’s digital services tax was unfair.
Talks resumed after the Canadian government scrapped the tax. Ottawa’s ambassador to the U.S. and lead negotiator Kirsten Hillman says she still believes a deal can be reached that will eliminate U.S. tariffs on Canadian goods.
So how does this all affect mortgage rates? Many economists believe a prolonged trade war could force the Bank of Canada to further lower interest rates to prop up a faltering economy. On the other hand, a deal could mean the central bank will instead focus on some concerning inflation numbers and hold rates instead.
As negotiations continue over the next few weeks, we’ll get a better sense of where rates could go based on whether a trade deal is reached.
Mortgage rates are sourced by Ratehub.ca. For a comprehensive list of today’s mortgage rates for each term/type, visit ratehub.ca/best-mortgage-rates.
Ratehub.ca is a mortgage-rate comparison marketplace and mortgage brokerage. It helps millions of Canadians compare and obtain the best mortgage rates, credit cards, insurance, deposits and loan products.
Rates shown are the lowest available for each term/type and category (insured versus uninsured) as of market close on July 3.
