Canada’s latest job report is raising concerns. In April, only 7,400 jobs were added nationwide, while the unemployment rate rose to 6.9%, the highest since November 2023. A big part of this slowdown comes from U.S. tariffs on key exports like steel and cars, which led to 31,000 job losses in manufacturing alone. Other industries like retail and wholesale trade also saw declines.
So what does this mean for you?
It could lead to lower interest rates.
When the economy slows and unemployment rises, the Bank of Canada often steps in to stimulate growth—and one way it does that is by cutting interest rates. Economists now expect a rate cut in June.
If that happens, it could make borrowing cheaper, including lower mortgage rates for homeowners and buyers.
Why This Matters:
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If you’re renewing your mortgage soon, a lower rate could reduce your monthly payments.
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If you’re house hunting, lower rates could increase your buying power.
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If you’re thinking about refinancing, now might be a good time to explore options.
Even with inflation cooling, job growth isn’t keeping up with population growth, which means the Bank of Canada is likely watching these trends closely. While no rate change is guaranteed, the odds are shifting in favour of lower rates ahead.
Need help navigating the market?
At TopRankinMortgages, we stay on top of the data so you don’t have to. Let’s chat about what these changes could mean for your mortgage—and how to take advantage.
