It is finally over. Donald Trump is set to become the 45th president of the United States. It is safe to say that this recent US election was one of the most polarizing and emotionally charged of our time.
Regardless of the diverse opinions, only time will tell how this will affect the average American, the US economy, and us Canadians since we are their largest trading partner with a closely linked economy.
Will there be a flood of Americans coming to buy up Canadian real estate? Most would agree that we probably shouldn’t be holding our breath for any large exodus out of the US. Will the new administration tear up NAFTA (North American Free Trade Agreement)? Many suggest that NAFTA would be renegotiated which might actually be a good thing for Canada.
Mr Trump had mentioned during his campaign his intentions to stimulate the US economy by spending on infrastructure and by other means. That would have an inflationary effect which has already led to rising bond yields causing the big banks to start raising fixed term mortgages since fixed term mortgages are tied to bond prices. Thankfully I have access to a variety of lenders other than the traditional banks.
With the recent mortgage rule changes combined with uncertainty in the bond markets, this could definitely have an effect on home prices and real estate activity over the short term. Now is the time to make sure you have the best mortgage strategies in place considering the uncertain market.
As your mortgage professional, I’m always looking at the changing mortgage environment and have the knowledge on what options exist. Call or email me today and let me help you make the right choices for you.