Tariffs and Saskatchewan Real Estate: What Homebuyers Need to Know

Tariffs and Canada-U.S. trade tensions have been making headlines. But what does all of this actually mean for Saskatchewan homeowners and homebuyers?

While there is still uncertainty, Saskatchewan’s real estate market has remained resilient. Here are the key things to know.

Why Do Tariffs Matter to Saskatchewan?

Saskatchewan relies heavily on trade. The United States is our largest trading partner, and approximately one in three Saskatchewan jobs is tied directly to exports.

That means changes in trade can have an impact here at home.

Tariffs can increase the cost of certain goods and building materials. They can also create uncertainty for businesses, which may affect hiring, investment and consumer confidence.

However, Saskatchewan has an important advantage: a strong resource and agricultural economy.

Our province is a major producer of oil, potash, uranium and agricultural products that are needed around the world.

In fact, Saskatchewan merchandise exports increased 8.2% during the first five months of 2026 compared with the same period in 2025.

Source: Government of Saskatchewan

Could Tariffs Affect Home Prices?

Possibly — but tariffs are only one piece of the puzzle.

If the cost of building materials increases, it can become more expensive to build new homes or complete renovations. CMHC has identified higher construction costs and trade uncertainty as challenges facing Canadian homebuilders.

When it costs more to build new homes, it can add additional pressure to an already tight housing supply.

At the same time, Saskatchewan home prices are influenced by many other factors, including:

• Housing supply and demand
• Population growth
• Employment
• Household income
• Interest rates
• Consumer confidence

This is why it’s important not to assume that tariffs alone will determine where Saskatchewan home prices go next.

Source: Canada Mortgage and Housing Corporation (CMHC)

What About Mortgage Rates?

This is where things get a little more complicated.

Tariffs can potentially slow economic growth. Normally, a weaker economy can create pressure for lower interest rates.

However, tariffs can also make some goods more expensive, which can contribute to inflation. Higher inflation can make it more difficult for interest rates to come down.

In other words, there are competing forces at work.

That’s one reason I would be cautious about anyone confidently predicting exactly where mortgage rates will go next.

How Is Saskatchewan Real Estate Doing?

Despite the economic uncertainty, Saskatchewan’s housing market has continued to show strength.

The province recorded 1,849 residential sales in June 2026, approximately 5% higher than the previous year and more than 18% above the 10-year average.

Sales during the first half of 2026 were also nearly 8% above long-term historical trends.

CMHC’s 2026 outlook points to continued strength in Saskatchewan’s major centres, although conditions will vary between communities.

Sources: Saskatchewan REALTORS® Association and CMHC

What Does This Mean for You?

If you’re thinking about buying a home, renewing your mortgage or refinancing, don’t make your decision based on one economic headline.

Instead, focus on what you can control.

Know your budget. Understand what your mortgage payment could look like at different interest rates. Leave yourself some breathing room for unexpected expenses.

Most importantly, choose a mortgage that makes sense for your financial situation and future plans.

The economy will change. Interest rates will change. Real estate markets will change.

A good mortgage strategy should be able to account for some of that uncertainty.

Have Questions?

If you’re wondering how the current market could affect your mortgage options, I’m always happy to have a conversation.

We can look at your individual situation, discuss the options available to you and determine what makes sense for your goals.

Sources

Government of Saskatchewan — Canada-U.S. Trade
Government of Saskatchewan — Saskatchewan Merchandise Exports, July 2026
Saskatchewan REALTORS® Association — Residential Market Watch, June 2026
Canada Mortgage and Housing Corporation (CMHC) — 2026 Housing Market Outlook
Government of Canada — Canada’s Response to U.S. Tariffs

This article is provided for general informational purposes only and is not intended as financial, legal, tax, real estate or investment advice. Economic and real estate market conditions can change. Mortgage approval, rates, terms and available products are subject to lender criteria and individual borrower circumstances.

‘Statistics Canada reported this morning that the Canadian economy contracted by 0.6% at a seasonally adjusted annual rate, a significant reversal from the 2.4% expansion posted in Q3. The weaker growth rate reflected a steep decline in business inventories, which was partially offset by increases in household spending, exports, and government capital spending.

Economists surveyed by Bloomberg were expecting a 0.2% annualized decline over the last three months of 2025, while the Bank of Canada projected flat growth.

As US tariffs weighed on Canadian exports for much of the year, real GDP increased by 1.7% in 2025, marking the slowest annual growth since the economy contracted in 2020 owing to the COVID pandemic. Lower exports, particularly to the United States, were the main contributor to the slower rise in GDP in 2025.

A preliminary estimate suggests real GDP remained unchanged in January, after increasing by 0.2% in December, slightly stronger than economists’ estimate of 0.1%.

Exports rose 1.5% in the fourth quarter, after increasing 0.9% in the third quarter. The growth in the fourth quarter was led by higher exports of unwrought gold and of unwrought aluminum and aluminum alloys. Despite the increases in the latter half of the year, exports fell 1.7% in 2025, as shipments to the United States did not fully recover following the drop in the second quarter.

Imports edged up 0.3% in the fourth quarter, as higher imports of computers, clothing and footwear, and metal ores were largely offset by lower imports of pharmaceutical and medicinal products. For the year, imports were down 0.4% in 2025, driven by the 2.9% decline in the third quarter.

The better-than-expected Q3 gain will not be sustained in Q4, as Statistics Canada’s advance estimate for October showed industrial gross domestic product fell at a -0.3% monthly pace.

The current overnight policy rate of 2.25% remains stimulative, but until the likely outcome of trade negotiations with the US is resolved, Canada’s economy will be on shaky ground. It is unclear whether the Canada-US-Mexico free trade agreement will be extended beyond this year. If not, Canada will be in for a significant trade policy redo as it seeks replacement markets for its exports.

Household spending rose 0.4% in the fourth quarter after declining 0.2% in the third quarter. Higher expenditures on rent and financial services in the fourth quarter were partially offset by lower spending on new passenger vehicles and alcoholic beverages, as overall expenditures on goods declined for a second consecutive quarter.

On an annual basis, household final consumption expenditure was up 2.3% in 2025, keeping pace with the 2.2% growth in each of the previous two years. The rise in 2025 was led by increased household spending on financial services and rent.

Total capital investment rose 0.8% in the fourth quarter, driven by increased government investment in weapons systems. In contrast, business capital investment edged down 0.1% in the fourth quarter, as both residential and non-residential investment decreased. These declines were moderated by increased business investment in machinery and equipment, primarily computers (+19.6%) and intellectual property products, namely software (+0.7%).

Annually, total capital investment increased 1.4% in 2025, led by higher government investment in weapons systems (+45.9%) and engineering structures (+6.7%). Business investment rose 0.3% in 2025, as higher residential construction (+1.0%) and non-residential construction (+1.6%) were largely offset by weaker investment in machinery and equipment (-3.5%). The year 2025 was the third consecutive year in which government capital investment contributed more to GDP growth than business capital expenditures.

Business residential investment declined in the fourth quarter, led by decreased ownership transfer costs (-2.4%), a measure of resale market activity, and lower renovations (-1.3%). New construction (-0.5%) also declined in the fourth quarter due to lower work put in place for single- and apartment units.

Higher business residential investment in 2025 represented the first annual increase since 2021, as increased new construction (+1.0%) and renovations (+2.7%) more than offset the decline in ownership transfer costs (-3.4%).

Bottom Line

While weaker-than-expected Q4 GDP figures might normally trigger an easing move by the Bank of Canada, the Governing Council has made it very clear that it remains concerned about inflation. Tariff uncertainty is especially high now that the Supreme Court has found the Trump administration misused the International Emergency Economic Powers Act (IEEPA) to impose sweeping, open-ended tariffs — striking down the legal foundation for a central pillar of the administration’s trade strategy.

The decision removes the fastest way to impose broad country-level duties, but it does not end the tariff debate. Other statutory authorities remain in play, and businesses and trading partners are left to assess what comes next.

The ruling also lands amid sustained political pressure around affordability, which may shape how aggressively trade tools are redeployed. Even if tariff rates decline, businesses must now assess whether alternative authorities will be used to reimpose them. For the real economy, restoring stability may matter as much as reducing tariffs themselves.’

The source of this article is from SherryCooper.com/category/articles/ published by the DLC website

I am very excited to be joining the Dominion Lending team!!

Today we are discussing first time home buyers benefits

First-Time Homebuyer Benefits.

Buying your first home is a significant milestone! While you’re thinking about your affordability and what type of home you want to own, we have some exciting updates around first-time homebuyer benefits:

New or Pre-Construction Homes: Did you know? First-time buyers looking to purchase a new build or pre-construction home are eligible for 30-year amortization. This mortgage commitment can allow you to have smaller monthly payments, versus a standard 25-year amortization.

Mortgage Default Insurance: The CMHC has recently made it so mortgage default insurance will cover up to $1.5 million homes (increased from $1 million), helping more Canadians qualify for insured mortgages.

The Home Buyers’ Plan (HBP): The Canadian government has a program known as the Home Buyers’ Plan (HBP), which is designed to allow first-time homeowners to withdraw up to $60,000 from RRSP to buy a home!

Purchasing with your spouse? You can access a total of $120,000 from your RRSP’s.

First Home Savings Account (FHSA): The First Home Savings Account (FHSA) is specifically designed to help first-time homebuyers save for their down payment without paying taxes on the interest earned on their savings. The maximum is $8,000 annually that you can add into this account to save, with a maximum of $40,000 lifetime contributions.

First-Time Buyer Exemption: First-time home buyers are eligible for an exemption, reducing the property transfer tax you pay. If the fair market value of the property is:

• $500,000 or less, you can claim an exemption amount equal to the full amount of property transfer tax.
• Over $500,000 but no more than $835,000, the exemption amount is $8,000.
• Over $835,000 and under $860,000 then the exemption amount is proportionally reduced up to $15,200.

Land Transfer Tax Rebates: First-time buyers in Ontario, British Columbia, Prince Edward Island, and the City of Toronto are able to claim land transfer tax rebates.

Reach out to me today to learn more!

Written by DLC Marketing Team