Fixed mortgage rates see some easing amid Trump tariff threats. Heres why – National [Video]

Canada’s mortgage market is reacting to fears this week that United States President Donald Trump’s threatened tariffs could deliver a sharp blow to the Canadian economy.

Experts say that home buyers and owners with a mortgage up for renewal could secure a cheaper rate amid the dysfunction, but also warn that the forecast for the spring housing market is far from clear thanks to the lingering uncertainty.

The five-year Government of Canada bond yield saw a sharp decline on Monday in the wake of Trump’s weekend announcement that blanket tariffs would hit the Canadian economy on Tuesday — an order that he later pushed to instead take effect in 30 days.

That metric — a key input for popular five-year, fixed-rate mortgages in Canada — fell roughly 20 basis points when markets opened to as low as 2.58 per cent, a low not seen since April 2022, according to Ratehub mortgage expert Penelope Graham.