Trade War Hits Home: Mortgage Renewal Rates Rise as Inflation Looms

The ongoing U.S.-Canada trade war is affecting mortgage renewal rates in Canada. The Bank of Canada held its key interest rate at 2.25 per cent earlier this month, but home ownership dreams may be further out of reach for Canadians due to the conflict. Reza Sabour, a Vancouver mortgage advisor, discussed the impact of the trade war on mortgage renewal rates with CBC's Dan Burritt.

The U.S.-Iran war and tariffs imposed by the United States are contributing to higher fuel costs in Canada, which is increasing inflation risks. The Bank of Canada governor has warned that this may lead to higher interest rates. In addition, the cost of borrowing may rise due to the trade war, making it more difficult for Canadians to afford homes.

Reza Sabour emphasized that 'you will pay' if you don't take action, referring to the potential consequences of not adjusting to changing mortgage renewal rates. He noted that Canadians need to be prepared for higher costs and consider their options carefully when renewing mortgages.