628: The Effect of Tarrifs on Interest Rates and Housing - Dave Larock

How will Trump's tariffs and potential rate cuts shape the mortgage market, and what should brokers be doing to stay ahead?

Today we’re joined by Dave LaRock, returning mortgage expert and writer at Integrated Mortgage Planners. We break down the latest economic shifts, including tariffs, inflation, and interest rates, and what they mean for mortgage brokers and homebuyers.

In this episode, we’ll cover:

1. Tariffs and Interest Rates: How new U.S. tariffs could lead to rate cuts in Canada and what that means for borrowers.
2. The Bank of Canada’s Next Moves: Why history suggests policy rates could drop to 2% or lower.
3. Refinancing Opportunities: A unique window where bank penalties are lower than usual, making refinancing more attractive.
4. Fixed vs. Variable Debate: Why variable rates may be cheaper long-term but come with risks borrowers should understand.
5. What’s Next for Housing?: Predictions on home prices, new construction, and the impact of economic uncertainty.

To connect with Dave, you can check out the links below:

Instagram
Facebook
LinkedIn
morplan.ca
www.integratedmortgageplanners.com/blog/

 

Follow me on Instagram: www.instagram.com/scottpeckford/

I Love Mortgage Brokering: www.ilovemortgagebrokering.com

Find out more about BRX Mortgage: www.whybrx.com

 

I Love Mortgage Brokering is in partnership with Ownwell.

To learn more, visit ownwell.ca. 

 

Here are the talking points we covered:

• How tariffs impact interest rates and inflation in Canada.
• The Bank of Canada’s likely response to economic uncertainty.
• Impact of tariffs on Canadian exports, GDP, and real estate.
• Why now is a rare opportunity for refinancing with minimal penalties.
• Explanation of the inverted yield curve and its implications.
• Term selection strategy: fixed vs. variable in today’s market.
• The importance of managing client expectations and framing mortgage advice.

 

In this episode of the I Love Mortgage Brokering podcast, I sit down with mortgage expert Dave Larock to unpack the impact of tariffs on interest rates and the Canadian housing market. We break down why the threat of tariffs alone is enough to create economic uncertainty, how the Bank of Canada may respond, and what that means for borrowers. Dave shares insights on term selection, why now is a unique window for refinancing, and why trying to time the market is a losing game. If you’re a mortgage broker looking to guide your clients through today’s rate environment with confidence, this episode is a must-listen.