I wanted to reach out to everyone after the tariff news that came out yesterday.

It’s important to recognize that Canada is entering a trade war with the United States. This situation could last for months, or even years, and right now we don’t know what the end result will be. While this isn’t the first major economic challenge as a country we’ve faced, and it likely won’t be the last, I want to share that from past experience, things do tend to improve over time. The market will adapt to the new conditions, and although the future for Canada’s economy looks uncertain, we will get through it.

In the coming months, many of us will likely see friends or family affected by job losses. If you or anyone you know needs help, please turn to me for guidance, and I will to be there to help and lead them through this.  My role as real estate capital advisor goes beyond just dealing with debt. I am involved in some of life’s toughest financial decisions, which means I’ll be helping people in different ways during this time. There will be people we know struggling who need assistance, others looking for investment opportunities, and some wanting to build. I am here to help in all of these areas, but as the market shifts, businesses will need to adjust as well.

In times like these, it’s important to think ahead. We need to consider what Canadians will need 12, 24, or 48 months down the road. My sense is that many Canadians will face tougher financial situations in the near future, with rising costs, higher unemployment, and fewer opportunities. This will likely push more people toward renting homes rather than buying, as affordability continues to worsen. This trend is already common in many European countries, and my Brokerage are well-positioned to help investors and developers build rental properties.

We saw this shift coming, even if it happened a bit faster than expected, and we are prepared for it.

Many economists predict the Bank of Canada will lower interest rates by 75-100 basis points to help cushion the blow from these tariffs.

This will affect the value of the Canadian dollar, meaning it will be worth less than it is now. The government has already announced plans for business and personal relief, which will include increasing the money supply to support Canadians. I urge you to plan accordingly, and if you have any questions about how this may affect you, I am always here to chat.

When rates drop, the government will likely encourage builders to keep constructing, and CMHC will play a major role in financing growth across Canada. As Canadian mortgage bonds continue to fall, this will present a good opportunity for our clients and help move projects forward. However, when rates eventually rise again, inflation will likely go up too, which means we’ll see another increase in rates down the road. During times like this, all of us in this sector are looking for guidance, and I see this as a chance for you to depend on my economic expertise (Laurier ’05) and provide support.

I will do everything I can to ensure that we all succeed together through this challenging time.

Remember – “Entrepreneurs are simply those who understand that there is little difference between obstacle and opportunity and are able to turn both to their advantage.” — Victor Kiam

Let’s take advantage of this opportunity that the media has promoted as disastrous.

Mathew

Matt@huronmortgages.ca 519-497-3667

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