Tariffs may be casting a cloud over the Canadian economy and housing market outlook, but there are still ways for brokers to uncover business
Ontario’s housing and mortgage markets are still quiet in the opening weeks of the summer, with economic uncertainty continuing to cloud the outlook for scores of hopeful buyers and borrowers across the province.
The trade war launched by US president Donald Trump at the beginning of the year looks set to rumble into another month, meaning thousands of Canadian jobs are still under threat with Ontario’s labour market especially sensitive to Trump’s tariff wave.
But that’s not to say the market has crashed – and there are still pockets of opportunity for mortgage brokers and lenders to uncover even in a slow purchase environment.
Streetwise Mortgages founder Dalia Barsoum (pictured top) told Canadian Mortgage Professional first-time buyers are “starting to take steps forward” in the current climate, even if they’re not exactly flooding back into the market yet.
What’s more, even if homebuying is muted, there are plenty of ways for brokers to serve existing homeowners who aren’t looking to purchase a new home – not least by helping clear up their financial picture.
“I think debt consolidation and creating breathing room in clients’ budgets applies regardless of whether we’re talking about real estate investors or not,” Barsoum said.
“Real estate investors, in particular, felt it the most here in Ontario because they own multiple properties with variable rates going up, and they use strategies that sometimes are dependent on market valuation. So there are cashflow pressures and [opportunities for] debt consolidation.”
Homeowners and real estate investors are also focusing on modifying and expanding existing properties. Bill 23, the More Homes Built Faster Act, introduced new legislative changes aimed at increasing housing density in Ontario by incentivizing the construction of extra living space and so-called “additional dwelling units” (ADUs) on properties.
That’s helped make those options more affordable, Barsoum said. “Under Bill 23, you’re now able to get contractors,” she explained. “You’re able to build for reasonable numbers where two, three years ago, you would call a contractor where nobody gets back to you and the prices were crazy per square foot.”
Home affordability deteriorated in eight of 13 major Canadian cities during May as recovering home prices offset the benefits of stable mortgage rates, according to a new report from Ratehubhttps://t.co/7nLFM9Uo3c
— Canadian Mortgage Professional Magazine (@CMPmagazine) June 21, 2025
CMHC programs remain popular
Investors, meanwhile, are continuing to avail of Canada Mortgage and Housing Corporation’s MLI Select program, a multi-unit mortgage loan insurance product with construction incentives based on meeting climate, accessibility and affordability goals.
“Whether it’s about taking a building and enhancing its net operating income or taking a residential property and converting it to five more units, or whether someone is building from the ground up – for anything about five [units], I’m seeing that happen because the cost of money over there is cheaper,” Barsoum said.
“It’s not an easy process sometimes to work with but it’s a cheaper type of money and there were obviously some incentives to get people to utilize these programs to help affordability and energy efficiency.”
Buyers finding new ways to overcome affordability challenges
Interest rates have fallen over the past year and home prices have also dipped, but affordability remains a big impediment for plenty of prospective buyers as they attempt to take their first steps in the housing market.
A growing number are now considering buying something with a secondary unit – and using it for rental purposes – to help with qualification, Barsoum said.
Still, while there are slivers of opportunity for brokers, much of the outlook for the remainder of this year will depend on whether Canada and the US make progress on trade talks and inject some confidence back into the economy.
Until then, the housing and mortgage markets will likely remain subdued. “I think the uncertainty in the air is a big factor,” Barsoum said. “There are concerns about the economy – and I think if it wasn’t for the trade tension and the concerns there, things would have been better.
“Rates have come down. Typically when the rates come down, we see movement and we see people coming back, but it’s just been trickling. I think it’s related to uncertainty, because homebuyers are concerned about whether they’re going to have their jobs.”
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