Tag Archives: CanadianRealEstate

Tariff on Canadian flag background

The Effect of Trump’s Tariffs on Canadian Real Estate

Canada’s real estate sector has continually been affected by both domestic and international economic as well as political factors. An underlying factor, amongst many that influenced the Canadian real estate sector within the recent years, is that of former United States President Donald Trump instituting tariffs. 

Of particular effect, these were implemented on steel, aluminum, as well as lumber. Broad repercussions were brought forth on building material costs, affordable housing, as well as broader investment across Canada’s real estate industry.

The Impact of Tariffs on the Construction Cost

One of the most real-world implications of Trump’s tariffs was that they resulted in an increase in the construction cost of materials. The United States imposed a 25% tariff and 10% tariff on imports of steel and aluminum from Canada in 2018, which increased the expense of acquiring these essential commodities for builders. 

This resulted in the following:

  • The construction cost of new homes and business developments went through the ceiling.
  • Homebuilders were compelled to pass these extra costs on to consumers, and this led to higher home prices.
  • The projects were delayed and exceeded budget due to rising material prices.
  • The Lumber Dispute and Housing Affordability

The United States had long been imposing duties on Canadian softwood lumber on the grounds that Canada was subsidizing its market unfairly. The tariffs were increased by Trump’s administration, which had a tremendous effect on Canadian homebuilders and the housing industry as a whole. 

The principal effects were:

  • Higher costs of wooden framing and wood buildings in house construction.
  • Higher costs of houses, which render housing beyond the reach of homebuyers.
  • Slower construction of new homes due to higher costs, which reduce supply in a tight market.

Foreign Investment Trends and Market Sentiment

Trump‘s trade and economic policies and the uncertainty that followed also indirectly influenced foreign investment in Canadian real estate. Foreign investors viewed Canada as a secure alternative to the U.S. during the uncertainty, thus the increase in:

  • Overseas demand for commercial and residential property in cities like Toronto and Vancouver.
  • Overseas demand, again driving up the price of property.
  • Some investors hesitant to invest due to uncertainty in U.S.-Canada trade relations.
  • The Resilience of the Canadian Market

Despite these difficulties, the Canadian housing market was resilient. Federal and provincial governments instituted policies to address affordability concerns, including:

  • Incentives for first-time buyers.
  • Increased focus on local production of lumber to minimize reliance on U.S. imports.
  • Strategic investment in infrastructure to mitigate rising costs.

Trump‘s tariffs had a profound effect on Canadian real estate, increasing construction costs, affecting the affordability of housing, and shifting foreign investment patterns. While some of those effects have been relaxing under the new trade agreements and policy overhauls, the long-term message is clear: Canadian real estate is incredibly sensitive to international economic policy and will continue to need to make adjustments to forces beyond its control.

As international trade policies change, the real estate market in Canada will have to remain nimble and responsive to keep the market stable and growing.

foreign investor

Can a Foreign Investor Buy Property in Canada?

Why Canada Is a Smart Choice for Real Estate Investment

Over the past decade—and especially following the global shifts brought on by the COVID-19 pandemic—Canada has solidified its reputation as one of the most secure and rewarding real estate markets in the world. Backed by a resilient economy, a transparent legal system, and consistently high demand, Canada attracts both domestic and international investors looking for long-term growth.

The Canadian property market is built on:

  • Clear property ownership laws

  • Strict professional standards

  • Inclusive policies that welcome foreign buyers

There are no restrictions on the number or type of properties non-residents can purchase, making it one of the most accessible real estate markets globally.

🏠 Can Foreigners Buy Real Estate in Canada?

Yes — and quite easily. Most provinces and territories do not restrict foreign buyers from owning real estate. However, a few specific regulations apply in certain regions:

  • British Columbia and Ontario charge a 15% Non-Resident Speculation Tax (NRST) on residential purchases in designated zones like the Greater Golden Horseshoe (GGH).

  • These taxes do not apply to commercial, agricultural, or industrial properties.

  • If you become a permanent resident within four years of purchase, you’re eligible for a tax rebate.

  • Various rebates and exemptions may apply based on your personal situation, location, and intended property use.

💰 What Non-Residents Need to Qualify for a Mortgage in Canada

Foreign investors are often eligible for the same mortgage products as Canadian residents, provided they meet specific criteria. Here’s what you’ll typically need:

  • A minimum 35% down payment, paid from your own verified funds (not gifted)

  • Proof of income (e.g., payslips, income tax returns)

  • Bank statements from the last 6 months

  • A reference letter from your current financial institution

  • A credit report (if available) or financial statements from a recognized institution

💡 Note: Most lenders will not count projected rental income as part of your eligibility.

✈️ How Many Times Do You Need to Visit Canada to Buy Property?

Foreign investors usually need to visit twice:

  1. To open a Canadian bank account (some exceptions may apply)

  2. To be present at the property closing, as power of attorney is generally not accepted

📈 Why Invest in Real Estate in Canada? Key Advantages

  • Low Interest Rates: Canada offers some of the most competitive mortgage rates in the world, often ranging from 1.5% to 2.5%

  • Strong Rental Yields: Major cities have high demand for rental units, with steady occupancy and increasing rents

  • 35% Down Payment Options: Mortgages are accessible with a reasonable equity contribution, even for non-residents

  • Pre-Construction Perks: Many new-builds allow deposits in small, phased installments over multiple years

  • Stable Market: With over 20 years of consistent growth, Canada’s property market has proven to be resilient, reliable, and profitable

🔍 Thinking About Buying? Here’s What to Do Next

  1. Assess Your Financial Situation
    Understand your budget, risk tolerance, and long-term investment goals.

  2. Connect With a Licensed Realtor
    Choose a professional with experience helping international buyers navigate local laws and financing.

  3. Get Pre-Approved for Financing
    Reach out to a mortgage specialist to determine your eligibility and prepare your documents.

  4. Explore Active Listings
    Look into regions like Toronto, Calgary, Vancouver, and up-and-coming suburbs with strong growth forecasts.

  5. Understand the Tax Landscape
    Be informed about regional property taxes, NRST, and available rebates before making your purchase.

📞 Need Expert Guidance?

Whether you’re looking to secure your first investment property or add another asset to your global portfolio, working with a knowledgeable real estate team can help you:

  • Find high-performing properties

  • Explore pre-construction opportunities

  • Understand your financing options

  • Maximize ROI through strategic resale or rental income

Before making any investment, take time to research the market, explore current MLS listings, and connect with trusted professionals who can support you from start to finish.

Housing Prices

Canadian housing Prices Over The Last 25 Years

 

What’s Your Home Worth Today?

It’s the question on every Canadian homeowner’s mind:
How much has my home appreciated since I bought it?

With property values surging across the country, especially in suburban areas where detached homes now average close to $1 million CAD, it’s no surprise that curiosity about home equity is at an all-time high.

Let’s Look Back: 25 Years of Growth

To understand how far we’ve come, it helps to look back over the last 25 years — roughly the length of a typical mortgage term. In 1996, the average home price in Canada was around $198,150. Fast forward to 2021, and that number skyrocketed to approximately $1,095,419.

It’s a staggering increase — and one that can be better understood using the CAGR (Compound Annual Growth Rate) calculator, a simple online tool that shows how steadily home values have grown over time.

Fun Fact: Back in 1998, “Toronto” included areas like Brampton, Mississauga, Etobicoke, and Scarborough. These are now independent cities under the Greater Toronto Area (GTA), often used for modern price comparisons.

Curious About Your Home’s Current Value?

Use our free “What’s My Home Worth” tool to get an instant estimate.
Or, for a personalized evaluation, simply fill out the form below and one of our experienced local agents will be in touch shortly.

Understanding Real vs. Nominal Growth

While the average home price increase shows a nominal CAGR of around 7.05%, the real value is slightly different. When you account for costs like:

  • Mortgage interest

  • Property taxes

  • Maintenance and repairs

  • Long-term inflation

…the actual net growth may seem lower — but here’s the key: those carrying costs typically reduce over time, while your home’s value keeps rising.

Bottom Line: It’s Still a Smart Move

Even if a 7% annual return doesn’t sound massive, homeownership remains one of the most powerful ways to build long-term wealth. And with your mortgage eventually paid off, your equity and property value continue to grow exponentially.

There’s almost never a “bad time” to buy — only better times to get started.