Canadians Steady on Homebuying Despite U.S. Tariff Concerns

While trade tensions continue to dominate global headlines, Canadian homebuyers appear remarkably steady. According to a new survey published in mid-August 2025, most Canadians say they are not postponing or canceling home purchases despite concerns about U.S. tariffs and their impact on the economy.

This resilience highlights how deeply ingrained the dream of homeownership is in Canada—even in the face of uncertainty.

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The Survey Findings

• Majority stable: Over 65% of respondents said tariff news had no impact on their homebuying decisions.
• Delays limited: Around 18% admitted they might wait until interest rate clarity improves.
• Confidence high: Nearly 70% of first-time buyers still intend to enter the market within the next 12 months.

The data suggests that while Canadians are aware of tariff risks, they remain confident in housing as a long-term investment.

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Tariffs and the Bigger Picture

The U.S. recently imposed new tariffs on steel, aluminum, and certain consumer goods, which could spill into the Canadian economy through:

• Higher construction costs: Builders may face more expensive raw materials.
• Inflationary pressures: Import costs could drive up consumer prices.
• Weaker exports: Canadian businesses may struggle to compete in global markets.

Even so, these economic risks have not significantly slowed housing demand—at least for now.

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Why Canadians Remain Confident

Several factors explain why buyers remain steady despite the noise:

• Population growth: Canada’s immigration levels (400,000+ annually) continue to boost demand for housing.
• Stable employment: National unemployment sits at 6.1%, with most sectors showing resilience.
• Cultural value of ownership: Homeownership remains a central part of Canadian financial planning and family security.
• Long-term mindset: Buyers see homes as 20- to 30-year commitments, less swayed by short-term tariff headlines.

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Mortgage Market Context

While trade and tariff issues dominate the news, the real challenge for Canadian buyers is still affordability under higher mortgage rates:

• 5-year fixed rates: 5.2% – 5.4%
• Variable rates: 5.9% – 6.1%

For example:

• A $600,000 mortgage at 5.3% fixed costs about $3,550 per month.
• The same loan at 6% variable rises closer to $3,780 per month.

This cost difference explains why many buyers are choosing shorter-term fixed mortgages (2- or 3-year) to stay flexible until rates ease.

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Expert Insights

Mortgage broker Emily Chen from Vancouver noted:

“Most of my clients are more concerned with interest rates than tariffs. Buyers know trade headlines come and go, but locking in a mortgage is a decision they control.”

Economist Martin Desjardins added:

“The Canadian housing market has a momentum of its own. Unless tariffs trigger a deep recession, the demand-supply imbalance will keep activity steady.”

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Implications for Buyers

For those planning to purchase in 2025, here’s what to keep in mind:

• Stay focused on rates: Watch for Bank of Canada signals more than trade headlines.
• Budget conservatively: Assume payments could rise if you choose variable.
• Use digital tools: Pre-approvals, online mortgage calculators, and virtual tours help reduce uncertainty.
• Think long term: If you plan to live in your home 10+ years, short-term trade issues matter less.

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Despite U.S. tariff concerns, Canadian homebuyers remain steady and determined. Housing demand continues to be fueled by immigration, jobs, and the cultural value of owning a home. For most households, the key factor is not trade disputes—but managing higher mortgage costs wisely.

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