How U.S. Tariffs Could Impact Alberta’s Housing Market and Mortgage Rates in 2025
The latest round of U.S. tariffs on Canadian goods—and Canada’s retaliatory tariffs—have added new uncertainty to the economy. Many Canadians are wondering:
Will mortgage rates go down in 2025?
How will these tariffs impact Alberta’s housing market?
Should I buy a home now or wait?
Alberta has been one of the most attractive places to buy a home in Canada due to its affordable real estate, strong job market, and lower taxes. But with economic shifts on the horizon, what should buyers and homeowners expect? Let’s break it down.
Will Mortgage Rates in Alberta Drop in 2025?
The Bank of Canada (BoC) is expected to cut interest rates in 2025, but how much and how quickly will depend on several factors:
Tariffs are slowing the economy – U.S. and Canadian tariffs are making products more expensive, potentially leading to slower economic growth and lower rates to stimulate the market.
Inflation remains uncertain – If tariffs drive up costs too much, inflation could prevent the BoC from cutting rates aggressively.
Alberta’s economy is still strong – The province benefits from a booming job market, oil and gas growth, and increased interprovincial migration, which could help stabilize the real estate market even if the national economy slows.
According to MPA Magazine, “Rate cuts seem likely, but inflationary pressures from trade tariffs could slow the Bank of Canada’s ability to act as aggressively as some homebuyers hope.”
How Will U.S. Tariffs Impact Alberta’s Housing Market?
Alberta has seen a surge in homebuyers from Ontario and British Columbia who are looking for more affordable housing. Even with economic uncertainty, Alberta remains an attractive place to buy a home or invest in rental properties due to:
Lower home prices compared to major markets like Toronto and Vancouver.
No provincial sales tax (PST), keeping overall costs lower.
A growing job market, particularly in energy, tech, and manufacturing.
More land and new developments, making homeownership more accessible.
If interest rates drop, affordability could improve even further, making 2025 a great year to buy in Alberta before prices rise again.
Should You Lock in a Mortgage Rate Now or Wait?
Many homebuyers and investors are wondering whether to lock in a mortgage now or wait for rates to drop further. The good news? Most lenders allow you to lower your rate if rates drop before closing.
Why Locking in Now Makes Sense:
Protection from unexpected rate increases – While rate cuts are expected, inflation or economic surprises could slow them down.
Lender flexibility – Many lenders allow rate adjustments if rates fall before your mortgage is finalized.
Avoiding rising home prices – Alberta’s real estate market remains strong, and lower rates could drive more demand, increasing prices.
Best Mortgage Options for Alberta Buyers in 2025
Depending on your situation, different mortgage strategies could work best for you:
If you’re unsure which option fits your goals, let’s talk about your mortgage strategy.
Looking to Buy in Alberta?
Let’s Find the Right Mortgage for You
Alberta remains one of the best places in Canada to buy a home, invest in property, or relocate for a lower cost of living. Whether you’re moving from another province or buying your first home, now is the time to explore your options
