At TopRankinMortgages, we know that economic news can sound confusing. Our goal is to make it simple so you can make the best choices for your home.
The News: A “Bumpy” October
A new report shows that Canada’s economy shrank by 0.3% in October. This was the biggest drop we’ve seen in nearly three years, but it wasn’t because of just one thing.
Think of it like a “perfect storm” of temporary events that hit all at once:
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New Taxes on Trade: New U.S. taxes (tariffs) on Canadian wood made it much more expensive to sell our lumber south of the border.
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Big Strikes: The Canada Post strike and a teachers’ strike in Alberta meant less work was getting done in those areas for a few weeks.
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Less Building: For the third month in a row, fewer new homes were being built across the country.
The Good News (The “Silver Lining”)
Even with that dip, the finance and investment part of the economy actually grew. This is a good sign because it shows that banks and lenders are still staying strong.
The Big Question: Will Interest Rates Drop?
Usually, when the economy slows down, the Bank of Canada lowers interest rates to make borrowing cheaper. But right now, things are a little different:
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Rates are “On Hold”: The Bank of Canada kept its main interest rate at 2.25% this month. They want to wait and see if the economy bounces back before making another move.
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No Hikes Expected: Because the economy is a bit weak, most experts don’t think rates will go up anytime soon.
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A “Wait-and-See” Time: We expect rates to stay exactly where they are for a while as the market settles.
What This Means For You
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If you are buying a home: Since fewer new houses are being built, the homes that are already on the market might become more valuable.
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If you have a mortgage: You probably won’t see your rate change immediately. This is a great time to talk to us about whether a fixed rate (stays the same) or a variable rate (moves with the market) is better for your budget.
The Bottom Line: The economy had a rough month, but it isn’t “crashing”—it’s just adjusting to some big changes.
Want to know how this affects your specific mortgage?
At TopRankinMortgages, we help you navigate this steady (and familiar) market with clarity and confidence. No stress, no pressure—just smart mortgage guidance when you need it.
Have questions about how this affects your mortgage? Let’s chat!
