For anyone buying a home, Trump’s win may help suppress any potential mortgage rate increase that was on the horizon.
This continued low-rate environment won’t stop the slight uptick in
mortgage rates, caused by the recent Federal Liberal mortgage rule
changes. However, it may prompt different levels of government to
consider alternative methods for cooling heated housing markets.
Impact on home sellers: Could be a rush to buy in Canada
Trump’s presidential win could be a boon for some home sellers in Canada. Americans may be so fed-up that they decide to head north.
More demand may help support real estate prices, particularly in
larger urban centers. Of course, this assumes the American dollar won’t
lose value and remove the relatively high purchasing power a U.S. buyer
would have in Canada.
If Americans do decide to move north, sellers in bigger urban centres
could see the biggest impact as the U.S. dollar still has about 30%
more buying power than the Loonie. Home sellers in Vancouver, however,
shouldn’t expect a big uptick in American interest, as the Foreign
Buyer’s tax that was announced and introduced this past August, will
probably dampen interest in property in the Lower Mainland.
