In case you didn't hear, Donald Trump was elected to be the next US President, and there just may be implications on us here in Canada!

Trump's election victory has already set off a wave of market reactions, sparking a surge in equities, crypto markets, and bond yields, which drive fixed mortgage rate pricing in Canada. For Canadian mortgage holders and homebuyers, the ripple effects were immediate, with some lenders already nudging rates higher. But what does Trump's win really mean for the Canadian economy—and for those with mortgages?

Trump's pro-growth policies and tax cut promises are fueling optimism in the U.S., which is spilling over to Canada. A healthy U.S. economy is the single most important factor for Canada, regardless of who is in charge. However, while Trump's tax cuts may boost growth, they could also balloon U.S. debt—meaning more government bonds hitting the market, which could depress bond prices and raise yields, putting upward pressure on fixed mortgage rates.

On the other hand, Trump's proposed tariffs on imported goods, especially from China, as well as lower tax rates and lighter regulation, could shift interest rate policy in the U.S. as his promised policies risk higher inflation. Higher inflation would mean the U.S. Federal Reserve could be slower to cut interest rates, and markets are already shifting their bets on how low the central bank is likely to go on rates. This could have implications for Canadian rates and the loonie.

As the Bank of Canada works through its own rate cuts to address the cooling economy, it has to keep the U.S. economy and the Fed’s policy in mind. As the value of the Canadian dollar is reduced relative to the U.S. dollar, that is also inflationary, because many things that we import are denominated in U.S. dollars. This means that the Bank of Canada may have to adjust its rate cuts accordingly, which could impact mortgage rates in Canada.

In my opinion, Trump's election victory could lead to more aggressive interest rate cuts from the Federal Reserve, as his administration's policies are expected to stoke economic stimulus. When the U.S. cuts rates, traditionally Canada follows, which means lower mortgage payments in the short term and more people getting into the real estate market. However, the potential for higher inflation and increased U.S. debt could also put upward pressure on fixed mortgage rates in Canada in the longer term.

Unfortunately, what happens in the US does affect us in Canada.   It’s important to think about these developments and how they impact us.By anticipating all the potential implications of Trump’s policies we can present more informed mortgage options and better navigate the market conditions.

Keep smiling and happy house hunting! 🏡😊

Cheers,

Stuart Lessels

Your “Go To” Mortgage Broker for Georgian Bay and beyond

stuart@housenow.ca

(705) 445-1234

Feel free to share this with your clients and colleagues. It’s always good to stay informed and be prepared for what’s coming next in the market! 😊

P.S. If you need any mortgage advice or have any questions, don’t hesitate to reach out. I’m here to help all across Ontario! 🏡📞

Following in My Parents' Footsteps: A Heartfelt Donation to Habitat for Humanity

As many of you know, my parents passed away a few years ago, leaving behind a lifetime of memories and cherished belongings. Among these were pieces of furniture that held significant sentimental value. For a while, I kept these items in a storage unit, paying monthly, unsure of what to do with them and nervous to let go of them. However, I recently decided to follow my parents' lessons in life and let these pieces have a better use for society.

I am donating this furniture to Habitat for Humanity. This decision was not easy, as it meant parting with items that were a big part of my growing up and my life with my parents. But knowing that my parents' spirit is helping others brings me immense joy and comfort. Watching these pieces go to new homes where they will be appreciated and used is a fitting tribute to my parents' legacy of giving and community support.

Habitat for Humanity is an organization that builds homes for those in need, providing them with a safe and stable place to live. By donating to Habitat for Humanity, we can make a significant impact on the lives of many families. It's a way to give back to the community and ensure that my parents' legacy of kindness and generosity continues.

If you have items that you no longer need but are still in good condition, consider donating them to Habitat for Humanity. Your contributions can make a world of difference to someone in need. It's a wonderful way to honor the memory of loved ones and support a cause that brings hope and stability to many.

Let's come together and make a positive impact. Whether it's furniture, time, or financial support, every little bit helps. Together, we can build a better future for those in need.

Keep Smiling and Happy House Hunting! 🏡😊

Stuart Lessels

Your “Go To” Mortgage Broker for Georgian Bay and beyond

stuart@housenow.ca

(705) 445-1234

Feel free to share this with your clients and colleagues. It’s always good to stay informed and be prepared for what’s coming next in the market! 😊

P.S. If you need any mortgage advice or have any questions, don’t hesitate to reach out. I’m here to help all across Ontario! 🏡📞

🌟Exciting News from the Bank of Canada!

On October 23, 2024, the Bank of Canada made a significant move by reducing the Prime Lending Rate. This is fantastic news for those of you with variable-rate mortgages, as it means your monthly payments just got a little lighter. For example, if your mortgage balance is $750,000, your monthly payment could drop by around $226. That's extra cash in your pocket each month!

Governor Tiff Macklem's Update on October 29, 2024

Recently, Governor Tiff Macklem provided an update to the House of Commons Standing Committee on Finance. He laid out some important details about the Bank of Canada's past actions, current observations, and future expectations. Here's a quick rundown:

• Past: Since June 2024, the Bank of Canada has cut rates four times, bringing the policy rate down to 3.75%. These cuts were made to support demand and curb inflation, which had been a significant concern.

• Present: The recent rate cut is part of an ongoing effort to achieve a "soft landing" for the economy, meaning balancing things out without triggering a recession. The Bank is closely monitoring economic indicators like employment, consumer spending, and business investments to guide their decisions.

• Future: If everything goes according to their forecasts, the Bank plans to continue cutting rates to ensure inflation stays on target and to support economic growth. When they mention "their forecasts," they're referring to their economic predictions based on a range of data points. These include global economic trends, domestic economic performance, consumer behavior, and employment rates. The Bank uses these indicators to predict how the economy will respond to changes in policy and to ensure they are on track to meet their goals for stable growth and low inflation.

Home Buyer: What Does This Mean for You?

This is a golden opportunity if you're looking to buy a new home. Lower interest rates mean you can afford a bigger mortgage for the same monthly payment. Plus, with my access to over 80 lenders, I can find you the best deal possible. Whether you're a first-time buyer or looking to upgrade, now's the time to act. Let me help you navigate this market and secure your dream home.

Home Owner: What Does This Mean for You?

If you're a homeowner thinking about renewing your mortgage, these rate cuts are great news. You might be able to lock in a lower rate and save money on your monthly payments. Even if you’re not up for renewal, it’s worth considering a refinance. Get in touch with me to see how much you can save. Remember, there’s no cost to you for my services!

Realtor: What Does This Mean for You?

For realtors, this rate cut is a fantastic talking point with your clients. Lower rates can stimulate more activity in the housing market, meaning more buyers ready to make a move. Partnering with a mortgage broker like me ensures your clients get the best financing options available, making you look even better. Let’s work together to make this a win-win for everyone involved.

Don't Miss Out on This Opportunity!

Contact me today to see how I can help you save money and make your mortgage experience a breeze. Let's get you the best deal out there!

Keep Smiling and Happy House Hunting! 🏡😊

Stuart Lessels

Your “Go To” Mortgage Broker for Georgian Bay and beyond

stuart@housenow.ca

(705) 445-1234

Feel free to share this with your clients and colleagues. It’s always good to stay informed and be prepared for what’s coming next in the market! 😊

P.S. If you need any mortgage advice or have any questions, don’t hesitate to reach out. I’m here to help all across Ontario! 🏡📞