How Steel & Aluminum Tariffs Could Impact the Canadian Housing Market & Mortgages
The potential steel and aluminum tariffs won’t necessarily raise material costs in Canada, but they could still have a big impact on the housing market and mortgages. The real concern? Job losses in these industries—and how they could trickle down to homebuyers, homeowners, and borrowers.
If thousands of Canadians in steel and aluminum manufacturing face layoffs or reduced hours, it could weaken economic confidence, mortgage approvals, and real estate demand. Here’s what you need to know.
What’s Happening with Steel & Aluminum Tariffs?
Canada is a major player in steel and aluminum production. If new tariffs hit, the cost of these materials may not rise within the country, but Canadian producers could lose export business, leading to job losses in manufacturing and related industries.
For those affected, this isn’t just an economic issue—it’s a personal finance crisis that could impact homeownership, mortgage approvals, and even home values in certain areas.
How This Affects the Housing Market
???? Lower Economic Confidence = Weaker Housing Demand
When large-scale job losses happen, people become cautious. Fewer buyers enter the market, and home sales could slow, especially in regions dependent on these industries (like Ontario and Quebec).
???? Mortgage Qualification Will Get Tougher for Some Borrowers
If you work in steel, aluminum, or manufacturing-related sectors, lenders might view your employment as less stable, making it harder to get approved for a mortgage or refinancing.
???? Local Housing Markets Could Feel the Pinch
Areas with a high concentration of steel and aluminum workers (like Hamilton, Sault Ste. Marie, and parts of Quebec) could see a slowdown in home prices and sales activity if jobs disappear.
The Mortgage Market Ripple Effect
???? Job Security Matters for Mortgage Approval
Mortgage lenders assess job stability before approving loans. If steel and aluminum job losses rise, those affected may struggle to qualify for new mortgages or refinancing.
???? Potential Decline in Home Prices in Impacted Regions
If job losses create a local slowdown, some housing markets could see longer listing times and price stagnation—a shift from Canada’s usual hot real estate market.
???? The Bank of Canada’s Response?
If job losses lead to weaker consumer spending and economic slowdown, the Bank of Canada could delay interest rate hikes—or even consider cuts to stimulate the economy.
What Should You Do?
✅ If You're in an Affected Industry, Plan for Job Stability – If your job could be impacted, consider securing financing now before employment uncertainty affects your mortgage eligibility.
✅ If You Own in a Steel/Aluminum Hub, Watch Market Trends – If local demand drops, it may take longer to sell properties or see price appreciation.
✅ If Buying, Be Strategic About Location & Market Timing – If certain areas see price softening, it could create an opportunity for buyers—but only if you have stable income and financing.
Final Thoughts
Even if steel and aluminum material costs don’t rise, job losses and economic uncertainty could still create a ripple effect in the housing and mortgage market. If you work in an affected industry, now is the time to plan ahead to protect your homeownership and financing options.
Need mortgage advice? Let’s chat. Whether you’re buying, refinancing, or just want to understand your options, I’m here to help. ???? DM me today.
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