On July 30, 2025, the Bank of Canada (BoC) decided to maintain its overnight policy rate at 2.75%, alongside a Bank Rate of 3% and a deposit rate at 2.70%. This decision marks the third straight pause since last pulling back sharply from a peak of 5% in mid‑2024.

🔍 Key Drivers Behind the Decision:

1. U.S. Tariff Uncertainty
   With trade talks still unresolved by the looming August 1 deadline, and tariffs (some at 25–50%) still in force, the BoC is cautious given the unpredictable U.S. trade policy.

2. Economic Resilience vs. Weakness
   Canada’s economy showed modest strength in some sectors, though exports contracted, particularly in tariff‑sensitive industries. Still, labour markets held up broadly.

3. Sticky Core Inflation
   Headline CPI eased slightly to 1.9% in June, but core inflation remains stubbornly elevated—around 2.5% when stripped of volatile items—above the central bank’s 2% target.

📊 No Standard Forecast—Three Scenarios Instead

Rather than presenting a single central growth or inflation forecast, the BoC released three scenario-based outlooks:

• Status quo: assumes current tariff levels persist

• De‑escalation: reduces tariffs

• Escalation: tariffs intensify sharply, leading to potential recession.

This multi-scenario approach reflects the heightened uncertainty around trade policy and its economic ripple effects.

💬 What the Bank Says & What It Means for You

While the rate hold was expected, the easing bias—the possibility of future cuts—remains clear if the economy falters or inflation cools further. Analysts like Doug Porter (BMO) and Andrew Kelvin (TD) note the BoC is keeping all options open while awaiting more clarity.

🎯 Why This Matters Right Now

• For borrowers: Variable‑rate mortgages and short-term loans remain unaffected—no relief yet, but no increases either.

• Policy direction: With August’s trade deadline imminent, the central bank could shift stance swiftly if new information alters the situation.

• Markets: The Canadian dollar dipped ~0.3% post-announcement; equities edged up modestly as risk‑off sentiment eased.

🛣️ What Could Happen Next?

Economists widely expect at least one more rate cut later this year, though opinions diverge on timing and magnitude.

🏠 What the Bank of Canada Rate Hold Means for Grande Prairie Home Buyers & Sellers

This morning (July 30, 2025), the Bank of Canada held its key interest rate steady at 2.75%. While it may sound like a dry headline, this decision has real implications for anyone buying or selling a home here in Grande Prairie—especially in a market where affordability, timing, and confidence matter more than ever.

🔍 What Did the Bank Say?

The BoC is in a holding pattern. With ongoing uncertainty around U.S. tariffs, slower exports, and still‑elevated core inflation, the central bank is waiting and watching. Instead of projecting a single forecast, they released three economic scenarios based on what might happen with global trade. That level of caution shows they’re ready to react, but not willing to move too quickly.

🏡 What This Means If You're Buying a Home in Grande Prairie

• Mortgage Rates Will Likely Stay Steady (For Now):
  If you’re shopping for a home, today’s rate hold means no sudden jumps in your mortgage rate. Fixed rates remain relatively low compared to recent years, and variable-rate buyers can breathe a little easier—at least for now.

• Good News for Pre-Approvals:
  If you’ve been pre-approved recently, your purchasing power likely hasn’t changed. That’s a big advantage if you're trying to stay competitive without overextending your budget.

• Room for Rate Cuts This Fall:
  The BoC left the door open for another rate cut later this year if inflation drops further or trade tensions ease. That could improve affordability even more heading into the fall market.

🏘️ What This Means If You're Selling a Home in Grande Prairie

• Buyer Confidence Remains Strong:
  When rates hold steady, buyers tend to stay active—they're not rushing to beat rate hikes or backing off because of market panic. That’s great news for sellers looking to move before winter hits.

• Stable Pricing Environment:
  Grande Prairie’s housing market is already known for its affordability compared to other Alberta cities. With rates unchanged and demand holding steady, we’re likely to see continued interest from both local and out-of-town buyers.

• Timing Is Still on Your Side:
  With no immediate rate hike fears, you have some flexibility in your pricing and marketing strategy. But don’t delay too long—if rates do drop again this fall, more competition could enter the market quickly.

📈 The Big Picture for Grande Prairie Real Estate

The Bank of Canada’s cautious stance is actually reassuring. They're monitoring inflation, watching trade dynamics, and willing to act if needed. For buyers and sellers in Grande Prairie, it creates a window of stability—a chance to make confident moves in a calm (but active) market.

If you’ve been on the fence about buying or selling, this might be the sweet spot before fall activity ramps up again. We’re not seeing the rate volatility of previous years, and that’s giving buyers a reason to shop and sellers a reason to list.

✅ Final Thoughts

In a market like Grande Prairie, where every dollar counts, today’s announcement is a green light for smart decisions. Whether you're upsizing, downsizing, or getting into your first home, the current rate environment supports affordable financing and steady buyer demand.

This was a pretty dry piece, with more data than usual, but if you have any questions on it, reach out and I will be happy to provide some insights to the market and future!

Chris

Summer in Grande Prairie is one of the best times to sell your home. The days are long, the yards are green, and buyers are motivated to get settled before the snow flies. But just because it’s a hot season doesn’t mean your listing will sell itself. As a local Realtor with years of experience in our unique northern market, I’ve gathered the top tips, clever hacks, and key things to watch out for when selling your home during the summer months.

🔥 Why Summer Works for Sellers

• More Buyer Activity: Families want to move before school starts, and buyers generally have more flexibility in their schedules.

• Curb Appeal is at its Peak: Lawns are lush, gardens are blooming, and homes look their best in the summer sun.

• Better Lighting for Photos & Showings: Natural light makes everything look brighter and more spacious, which helps homes show better both online and in person.

🛠️ Summer Selling Hacks

1. Maximize Curb Appeal
Your home’s first impression starts at the curb. In Grande Prairie, that could mean freshening up your front steps, mowing regularly, and adding a few seasonal flowers to the entryway.

2. Keep it Cool Indoors
Buyers don’t want to walk into a stuffy home. Run your AC (if you have one), or at the very least, use fans strategically and keep blinds closed during the hottest parts of the day to maintain a comfortable temperature.

3. Stage for the Season
Think light, airy, and inviting. Swap out dark throw pillows and heavy curtains for summery alternatives. A pitcher of lemonade on the kitchen counter or fresh flowers in the dining room can go a long way.

4. Schedule Smart Showings
Avoid midday appointments when the heat can make things uncomfortable. Aim for mornings or evenings when the light is still great and the temperatures are more pleasant.

5. Highlight Outdoor Spaces
In summer, buyers are dreaming of BBQs and backyard fires. Stage your patio or deck with seating, clean up the fire pit, and make sure the grass is trimmed and tidy.

🚧 What to Watch Out For

🔥 Heat Damage
Shingles, siding, and driveways can suffer under the summer sun. Do a quick check for any warping or cracking and make small repairs if needed.

🐜 Seasonal Pests
Ants, wasps, and mosquitos love summer too. Be proactive with pest control, especially around entrances and outdoor areas.

🌦️ Sudden Storms
Grande Prairie is known for unexpected summer storms. Keep gutters clean and make sure downspouts are properly directed to avoid pooling water near the foundation.

👃 Odours and Air Quality
With windows often closed for cooling, indoor air can get stale fast, but smoke outside can come in quickly, so make sure you are mindful of each when you have a showing.

Final Thoughts

Selling in the summer gives you the advantage of better weather, motivated buyers, and peak curb appeal—but it still takes strategy and preparation. If you're thinking of selling in Grande Prairie, I’m here to guide you through every step—from pricing it right to staging like a pro and negotiating top dollar.

Have questions or thinking of listing your home?
Let’s connect and talk strategy before the leaves start turning. Your perfect buyer might already be looking.

Hope you’re all enjoying the sunshine!

Chris

Hey all! The extremely busy Grande Prairie spring real estate market has taken up pretty much all of my time lately, so I am a little behind on these posts. I wanted to share a quick one that can help add to your homes value. If you are unsure on anything, never hesitate to reach out! Thinking of buying or selling? You know what to do!

Thinking about selling your home in Grande Prairie? Before you stick that “For Sale” sign in the yard, you might want to consider making a few smart upgrades that can boost your home's value — and help it stand out in a competitive market.

Not all renovations are created equal, especially in our local market. Here are five of the best improvements you can make to help attract buyers and potentially sell your home faster (and for more money).

1. Fresh Paint – Neutral Wins Every Time 🎨

First impressions matter. A fresh coat of paint can make your home look cleaner, brighter, and more modern — all for a relatively low cost.

What to focus on:

• Stick to neutral colours like soft greys, beiges, or warm whites

• Repaint high-traffic areas and patch up scuffed walls

• Don’t forget baseboards and doors for that finished look

💡 Grande Prairie buyers often prefer move-in ready homes — a clean, neutral space helps them imagine living there.

2. Curb Appeal – Your Home’s Handshake 🌳

You never get a second chance at a first impression. The exterior of your home sets the tone before a buyer even steps inside.

Easy upgrades:

• Power wash siding, decks, and walkways

• Trim shrubs and add fresh mulch or flowers

• Replace old house numbers, door hardware, or the mailbox

💡 Even in winter months, a clean walkway, tidy entrance, and fresh doormat can make a huge impact.

3. Kitchen Facelift – Small Changes, Big Results 🍽️

You don’t need a full kitchen reno to make an impact. Minor upgrades can go a long way in modernizing the space.

Try this:

• Replace dated cabinet hardware

• Upgrade light fixtures or faucets

• Paint or refinish older cabinets for a fresh, clean look

• Consider new countertops if the old ones are damaged or outdated

💡 Kitchens sell homes. A few modern touches can make your kitchen pop in listing photos and during showings.

4. Bathroom Refresh – Clean and Functional 🚿

A tired bathroom can turn off buyers quickly. But a quick refresh can make it feel brand new.

Simple updates:

• New mirror or lighting fixture

• Replace old faucets or towel bars

• Regrout tile or clean up caulking

• Add a fresh shower curtain and fluffy towels

💡 Buyers appreciate clean, well-maintained bathrooms — they don’t want to worry about costly repairs right away.

5. Flooring Upgrades – Durable & Consistent Flooring is Key 🧹

Old carpet or mismatched flooring can make a home feel dated. In Grande Prairie, many buyers love durable flooring that stands up to families, pets, and long winters.

Best bets:

• Replace worn carpet with vinyl plank or laminate

• Match flooring across main living spaces for a cohesive look

• Deep clean existing floors if you’re not replacing them

💡 Buyers see new flooring as a major value-add, especially when it means one less thing they’ll need to change.

Final Thoughts

You don’t need to spend tens of thousands to increase your home’s value. Strategic updates — especially the ones buyers care about most — can help you sell faster and at a better price.

If you’re wondering which improvements make the most sense for your home and budget, let’s chat! I’m happy to walk through your property and give honest advice on what will help it shine in the Grande Prairie market.

📞 Ready to sell or just exploring your options?
Let’s talk — I’ll help you prep, price, and position your home to get the best results possible.

Until next time, Chris. 

It’s been a minute since I last posted. The busy spring market has taken a lot of my time away, but I wanted to make an informative post on what is happening with interest rates, the market, and some info for the future. If you are thinking of buying, check out my comprehensive, tailored to Grande Prairie, Buyers Guide here.

If you’re selling, give me a call and we can make a plan. I am always available @ 780-228-6610 or email me at Chris@ChrisCline.net. 

Even if you’re just curious about something, reach out anytime, I am here to help.

On with the post…

The real estate landscape in 2025 continues to evolve, and one of the biggest factors influencing buyer and seller decisions right now is interest rates. With the Bank of Canada’s key rate currently sitting at 2.75%, we’re seeing real effects on affordability, inventory, and overall market momentum here in Grande Prairie, Alberta.

Let’s break down what this means for you—whether you’re planning to buy, sell, or just stay informed.

What’s Happening with Interest Rates Right Now?

As of April 2025, the Bank of Canada has lowered its benchmark rate to 2.75%, following a series of rate cuts that began in mid-2024. This is a significant shift from the 5% peak we saw just last year, and it's having a noticeable impact on mortgage lending and buyer behavior.

The reason? Easing inflation and a softer economy have given the Bank room to support growth by making borrowing more affordable.

The Impact on Mortgage Affordability

Lower interest rates are good news for buyers. For example, someone looking at a $400,000 home might save hundreds per month on their mortgage payments now compared to rates a year ago.

That’s a big deal—especially in a market like Grande Prairie where price points are often more accessible than major urban centers.

Pro Tip: If you haven’t updated your mortgage pre-approval recently, now’s the time to revisit it. You might qualify for more than you expected.

How the Grande Prairie Market Is Responding

We’re starting to see the effects of these rate changes locally:

• More buyer activity, especially from first-timers and those moving up.

• Sellers are gaining confidence, with more listings hitting the market this spring.

• Homes that show well and are priced right are attracting multiple showings—and in some cases, multiple offers.

That said, buyers are still savvy. They’re looking for value, negotiating, and taking their time when options are plentiful, and they are getting more plentiful recently. There is still very low inventory in Grande Prairie, but it is slowly getting better.

Advice for Sellers in This Market

With more buyers actively looking and rates making mortgages more affordable, it’s a great time to sell—if you’re strategic.

Here’s what works in this kind of market:

• Accurate pricing—don’t chase the market, lead it.

• Professional staging and great photography to stand out online.

• A clear plan and expert guidance (that’s where I come in 😉).

Even in a more active market, smart preparation can help you sell faster and for more.

Advice for Buyers Navigating 2025

Lower interest rates have opened a window of opportunity, but don’t wait too long. As more buyers re-enter the market, competition could increase.

Here’s what to do now:

• Lock in your rate with a pre-approval.

• Be clear on your must-haves vs. nice-to-haves.

• Work with a local REALTOR® who knows the neighborhoods, pricing trends, and negotiation strategies.

Remember: real estate is a long-term investment. Rates may rise or fall again, but buying smart today can set you up for years to come.

Final Thoughts: What’s Ahead for Grande Prairie Real Estate?

With interest rates holding steady at 2.75%, and potential for another cut later this year, we expect continued activity in the Grande Prairie market.

That means more opportunity—but also the need to stay informed, prepared, and strategic.

📞 Need help figuring out your next move? Let’s connect.
I offer free home evaluations, buyer consultations, and the kind of market insight that only comes from 18 years of experience in Grande Prairie real estate.

Let’s turn this market in your favor.

Thanks for reading, Chris. 

Many people don’t know how much they pay in interest each month on their mortgage. I am going to try and break it down as simple as possible so you have an idea each month what you are paying towards the principle on your Grande Prairie home, and how much is going to interest. These are approximate formulas. 

I am going to use simple numbers to make it easier to break down, but the formula is roughly the same for any mortgage. Keep in mind, these are very ballpark numbers and only to be used for an easy way to get an idea and a rough estimate. You should always use a mortgage calculator to get an exact number. Here is a link to the TD Bank Mortgage Calculator, provided by Lind Doberdolani at TD Bank in Grande Prairie. You can reach out to him for any mortgage questions. His number is 780-868-5967. He has been a fantastic resource for me to deal with over the years. Always quick to answer any questions and has helped countless clients of mine. 

With all that being said, here goes:

Say you have a $500,000 mortgage, and get a 6% interest rate over 25 years. (I am using higher than normal numbers to keep the math simple.)

First you would take the interest rate of your mortgage and divide it by 12. So in our example, it would be 0.5% each month. Then you multiply that 0.5% by the outstanding balance. That number is what you are paying on interest each month. In this scenario, the interest each month would be $2,500 per month. 

$500,000 principle × 0.005% monthly interest rate = $2,500

The more you pay that down, the less interest you pay. So each month that interest total drops a bit. There are different types of mortgages, so not all are equal, but I am trying to do this as simply as possible. If the interest rate never changes, as you pay it down, the breakdown would look like this:

$400,000 principle x 0.005% monthly interest rate = $2,000

$300,000 principle x 0.005% monthly interest rate = $1,500

$200,000 principle x 0.005% monthly interest rate = $1,000

$100,000 principle x 0.005% monthly interest rate = $500

Those were some higher numbers. Lets use a more common example. Say you were to buy a home in Grande Prairie, with the average price hovering around $400,000 and a fixed interest rate that was just emailed to me on Monday at 4.19% your numbers would look more like this:

$400,000 principle x 0.0035% monthly interest rate = $1,400

$300,000 principle x 0.0035% monthly interest rate = $1,050

$200,000 principle x 0.0035% monthly interest rate = $700

$100,000 principle x 0.0035% monthly interest rate = $350

These numbers are not exact to every mortgage, as I mentioned there are several different products depending on variable, fixed, etc. This is this is just a simple baseline way to calculate it. These numbers won’t be exact, and could be off by as much as $100 per month at the beginning. Again, we were just going for simplicity in this post. If you make extra payments on your mortgage, you don’t pay that interest, so each month, regardless, your total interest payment will go down. 

Any questions, feel free to reach out and I would be happy to connect you with a mortgage broker to help guide you in the process. I deal with several great ones on a daily basis and would be happy to steer you in the right direction. I hope you got some value out of this, and from my previous blog posts. I try to post at minimum every two weeks to keep you informed on the market and what is happening in the world from my perspective. Feel free to browse my past ones and let me know if you have any questions. Until next time.

Chris

I am going to try and lay out my thoughts on what could happen for real estate in Grande Prairie with all these tariffs and counter tariff threats. It’s a question I get asked a lot from clients and everyday people lately, and my answer has always been, “honestly, I don’t know.” And I will admit, I still don’t. Take this with a grain of salt, I am just a fella trying to make sense of this all, just like most of you. It is by no means financial advice, real estate advice, and most certainly not life advice lol. I realized I have enjoyed getting my thoughts in writing on this blog over the last few months (feel free to check out my previous posts), so this is just my take on things as they stand today. 

All I can go on is what I have seen in the past for real estate in this area, what sometimes happens, and what I “think” may happen going forward. I am not trying to sell anyone anything, or push a narrative that “everything is fine, you should just buy buy buy.” Any client who has ever dealt with me, knows that I am always thinking 5-10 years down the line. When they are looking at a home to buy, I am always thinking “can I sell this in 5-10 years when they call me to sell it for them.” So I think a measured approach is always needed when you are in the market, regardless of whatever sideshow is going on in politics, or around the world. So here goes, I may read this in 5 months and laugh (or cry) about how wrong I was.

Short term outlook, I don’t think there will be much of an impact here. Long term is always anyone’s guess, and if we get into a full blown trade war with the worlds largest economic superpower, nobody in Canada wins, regardless of the region. The Grande Prairie economy is strong, and despite what Donald Trump says, they need Alberta’s resources. The tariff reduction on energy is already an indication of that. What I have seen in the past, and keep in mind, this is a personal outlook/opinion, is when Canada goes into a recession, more people tend to move to Grande Prairie from around the country. With manufacturing most likely taking a big blow, you may see more pain in the Ontario job market than we see here. If there are job losses there, generally the first place people look to is Alberta. And when looking to our province, Grande Prairie, with our still relatively affordable housing, and strong economy is always an attractive looking option. 

I think Edmonton and Calgary could see some price dips more so than here. Since 2020, lots of people in Toronto or Vancouver would sell their overvalued homes there, and move to more affordable options like Calgary and Edmonton, while still enjoying the amenities a major city provides. Those are not the people moving to Grande Prairie for the most part. You are more apt to see the family who lost their manufacturing job in Windsor, who doesn’t have a multi million dollar home in Toronto to sell, to buy something cash here. They are looking at options to provide the best life for their family. Grande Prairie still offers a beautiful home at a reasonable price. While prices have increased here, we are still well below the national average for homes in Canada ($670,064 in January 2025 as per the Canadian Real Estate Association). The average sales price in Grande Prairie in January was $370,288. As per me, right now. 

Long term, I have no clue. I think if someone tells you they have a clue, they are lying. Trump could change his mind this afternoon and then I’ve just wasted a good chunk of my morning researching and writing this post lol. In closing, if you need a place to live, buy a home. You are going pay rent anyways (which is probably going to go up in Grande Prairie if we see massive job losses across the country, and a large number of people migrating here.) If you want to wait and see how it shakes out, I don’t blame you there either. I think short term, there will be little to no impact on prices here. Again, if we get into a full blown trade war, we’ll all be homeless. While I don’t have much faith in the Government of the day, I would hope someone within the party would stop them before it escalated to that. I am hoping this is a short lived pissing match, the adults come back to the room and this is all forgotten by summer. Will that be the case? Maybe, but unlikely. Regardless, I am going to keep on doing what I am doing and going about my life, working, (paying taxes) keeping my head down and living life, and am not terribly worried about the impacts on Grande Prairie as things stand. Oh, I almost forgot, on top of those things, I will also be paying my share of retaliatory tariffs…. Yay. 

Chris

The real estate market in Grande Prairie is experiencing a significant shift due to low housing inventory. Buyers and sellers alike are feeling the impact, with fewer homes available for purchase and increased competition driving up prices. Whether you're looking to buy or sell, understanding how this low inventory market affects home sales can help you make informed decisions.

What is Low Inventory?

Low inventory means there are fewer homes listed for sale compared to the number of buyers looking to purchase. This creates a seller’s market, where demand outpaces supply, leading to multiple offers and quicker sales.

How is Low Inventory Affecting Home Sales?

1. Rising Home Prices With fewer homes available, bidding wars have become more common. As a result, sellers are seeing their properties sell for higher prices, sometimes even above asking. This is great news for homeowners looking to sell but can be challenging for buyers on a budget.

2. Faster Sales Homes in Grande Prairie are selling much faster than usual. Buyers need to act quickly when they find a property that meets their needs. Delays in decision-making can result in missing out on a home to another eager buyer.

3. Increased Competition With multiple buyers competing for the same properties, many homes are receiving multiple offers. This often means buyers must be prepared to offer above asking price, include fewer conditions, and be flexible with their terms to make their offer stand out.

4. Challenges for First-Time Buyers First-time homebuyers are particularly affected by low inventory. Higher prices and increased competition make it harder to enter the market. Many are turning to creative strategies such as securing mortgage pre-approvals, working with experienced real estate agents, and broadening their search criteria to find a suitable home.

5. Limited Options for Move-Up Buyers Homeowners who want to sell and move into a larger or upgraded home face a dilemma: while they can sell their current home quickly, they may struggle to find a new home that meets their needs. Some are choosing to stay put, further limiting the number of homes available on the market.

What Can Buyers and Sellers Do?

• For Buyers:

  • Get pre-approved for a mortgage to move quickly when making an offer. Having a solid pre-approval is paramount before looking at homes. It not only shows sellers that you are a serious buyer but also gives you a clear understanding of your budget. In this competitive market, many sellers will not entertain offers from buyers who do not have a pre-approval in place. Additionally, a pre-approval helps you act quickly when you find the right home, giving you an edge over buyers who are still sorting out their finances.

  • Work with an experienced real estate agent to identify new listings immediately.

  • Looking at homes immediately is now required due to the fast-paced market.

  • Be prepared for multiple offer situations and know your maximum budget.

  • Consider expanding your search criteria to include different neighborhoods or property types.

  • Be flexible with closing dates and other conditions to make your offer more attractive.

• For Sellers:

  • Take advantage of the high demand by listing your home sooner rather than later.

  • Price your home competitively to attract the best offers.

  • Be prepared for quick sales and consider where you will move next. This can make moving in market challenging. Upgrading is easier than downgrading

  • Talk to me about all your options, this may be your best chance to capitalize on equity. Higher end homes have not moved up as much as the mid range. 

Conclusion

The low inventory market in Grande Prairie is making home buying more competitive while benefiting sellers with strong prices and fast sales. Whether you’re a buyer navigating the competition or a seller looking to maximize your home’s value, working with an experienced real estate professional can help you make the most of the current market conditions. If you're thinking about buying or selling, reach out today to discuss your options!

Chris

This is an article from Yahoo Finance Canada, I am simply copying and pasting for your information. I will have no input or opinions at this time on what happens tomorrow, with the expected rate cuts. 

Story by John MacFarlane

A series of five consecutive Bank of Canada (BoC) interest rate cuts through 2024 has offered some relief to mortgage holders and at least a flicker of movement in the housing market, but U.S. President Donald Trump’s tariff threat might blunt the effects of another rate reduction on household budgets.

A cut Wednesday is likely to be “greatly overshadowed” by a possible Canada–U.S. trade war, says Justin Herlick, CEO and co-founder of Pine, a digital mortgage and real estate platform. 

In December, BoC governor Tiff Macklem characterized the potential tariffs as "a major new uncertainty.” The Bank’s path forward after Wednesday’s announcement — and the future of its overnight rate and consequent lending rates for consumers — is far from clear, dependent on factors including the scope of U.S. tariffs (if any), the extent of a Canadian retaliation, and the timeframe.

“Let's say they impose these large tariffs and the Canadian government responds, as they have communicated, with counter tariffs,” Herlick said in an interview with Yahoo Finance Canada. “That's going to be largely inflationary, right? And if it's largely inflationary, then the Bank of Canada won't be able to cut as per its plan, which will leave mortgage rates higher.”

The price increases associated with a trade war, however, would “almost certainly come alongside a sharp rise in the unemployment rate,” Desjardins Group economist Royce Mendes wrote in a note on Monday, “driving home the need to ease rather than tighten financial conditions. Rates might ultimately come down, but in the context of a wounded economy."

“There are just many unknowns right now,” said Clay Jarvis, a real estate expert at Nerdwallet Canada. “And I think because they're unprecedented, something like a trade war with the U.S., a lot of home buyers haven't lived through something like that. And we haven't really seen an unleashed Donald Trump and what he could do to the Canadian economy.”

With that said, ongoing evidence of Canadians’ cost-of-living struggles, in the form of data on loan payments and credit risk, suggests consumers are likely to remain hesitant even without a tariff threat, Jarvis tells Yahoo Finance Canada.

“If people are missing their car payments or falling behind on their credit cards, I question whether those people are ready to take on a multi-hundred-thousand-dollar mortgage,” he said. “I don't think a minimal cut from the Bank of Canada is really going to change the game for anybody. It might still have that little bit of psychological value or ‘Hey, rates are coming down, things feel good.’ But in terms of affordability and making things easier for buyers in that regard, I don't think a minimal cut to variable rates is going to do much for them.”

The five consecutive cuts from Canada's central bank since June 2024 have reduced the policy rate from five per cent to 3.25 per cent. Those cuts have reduced monthly payments on a $600,000 variable-rate mortgage by about $630. A cut Wednesday would trim around $90 more from the monthly payment.

Both Jarvis and Herlick say competition among lenders is high right now, meaning anyone looking to buy a home or renew should shop around. “If you just take blatantly your blind offer from your existing mortgage lender, you are likely getting a significantly worse offer than what's out there,” Herlick said.

If the BoC’s rates continue to drop, Herlick adds, it could even create a situation where someone who renewed last year might be better off breaking that mortgage and paying the penalty. “Normally, it's not really worth it to break a fixed mortgage mid-term,” he said. “However, given how high rates were about seven months ago, and where they're going into, it could actually make sense.”

Fixed-rate mortgages, which are priced in line with the bond market rather than central bank rates, haven’t moved much in recent months, and have “already adjusted” for the expected Wednesday cut, Herlick says. “So with this one, you're not going to get a lot of relief on fixed-rate mortgages.”

Two-thirds of Pine’s business is made up of people looking at variable-rate mortgages, Herlick adds, which stands out against a historical preference in Canada for fixed-rate loans. 

“So we're in a time where people are trying to anticipate a cut environment," he said. “I wouldn't say we're feeling direct nervousness of the trade implications, but what we are and have been feeling for over a year now is just people who are very worried about their household expenses, as they have to adjust to the new reality of where interest rates are now.”

Even the emergence of a tariff fight with the U.S. wouldn’t necessarily crush the housing market, Jarvis says. “Canadians are really driven by FOMO when it comes to housing,” he said. "If economic conditions emerge that lead to interest rates dropping substantially further, people would likely buy in spite of the situation."

“If it became cheap to buy a house, people would do it,” he said. 

“I mean, we saw it during the pandemic. We were in the middle of a recession and a completely unprecedented pandemic that nobody's ever dealt with, but still we'll go out and buy a million-dollar house.”

You can find the full article here: What a sixth Bank of Canada interest rate cut could mean for mortgages as tariffs loom

Chris

The political uncertainty in Canada right now is unparalleled in my adult lifetime. We are in literal limbo with a major trade dispute brewing, a non functioning government, and a Liberal party that seems to be using it as a political tool while they figure out who they want to lead them into the next election, which is looking more and more likely to happen in the fall now. None of this is good for anyone, outside of maybe the Liberals who can possibly gain some support on this wedge issue as they find a new leader. 

It will impact this region greatly, and from my view right now, in no way positive. How so? I will lay it out below. 

1. Energy Sector Challenges

• Alberta exports most of its oil and natural gas to the U.S., so any tariffs or restrictions could increase costs for American buyers, making Alberta’s oil less competitive.

• If the U.S. increases domestic oil production or prioritizes American energy (e.g., encouraging more fracking), demand for Alberta oil could decline.

• The U.S. has previously discussed higher tariffs on imported oil to protect its own producers, which could directly harm Alberta’s oil industry.

2. Higher Costs for Businesses & Consumers

• Many Alberta businesses rely on imported materials from the U.S., such as:

  • Construction materials (steel, aluminum, lumber)

  • Machinery and equipment

  • Automotive parts

  • Agricultural supplies

• If tariffs increase the cost of these imports, businesses may pass higher costs onto consumers, making housing, food, and transportation more expensive.

• Alberta relies on trade and foreign investment, so economic uncertainty caused by tariffs could slow business growth.

3. Agricultural Industry at Risk

• The U.S. is a major buyer of Alberta beef, pork, and grain. If tariffs or trade restrictions make Alberta products more expensive, U.S. buyers might switch to domestic suppliers or other countries.

• If Canada retaliates with tariffs on U.S. products, Alberta farmers might face higher costs for farm equipment, fertilizer, and feed.

• The livestock industry (especially beef and pork) could be hit hard if U.S. protectionist policies favor American farmers.

4. Manufacturing and Tech Sectors Could Suffer

• Alberta's manufacturing sector depends on U.S. markets and supply chains. Tariffs could make Alberta-made goods less competitive, leading to:

  • Job losses

  • Decreased investment in new production facilities

  • Slower growth in industries like petrochemicals and high-tech manufacturing

• Technology startups and innovation hubs in Alberta also rely on global trade and U.S. partnerships. Tariff uncertainty could make investment harder to secure.

5. Currency Fluctuations and Investment Uncertainty

• If tariffs disrupt trade, the Canadian dollar (CAD) could depreciate against the U.S. dollar.

  • This could make imports more expensive (bad for businesses)

  • It might help exports but also make foreign investment riskier

• Investors prefer stable markets, and ongoing trade tensions with the U.S. could scare away investors from Alberta’s energy and business sectors.

The current “Team Canada” assembly in Ottawa wants to respond in kind with tariffs of their own. While I am not going to pretend to be a trade expert, there are many risks with this approach as well.

1. Higher Costs for Alberta Businesses

When Canada imposes tariffs on U.S. goods, it makes imported materials more expensive for Alberta companies that rely on them. Some key areas of concern:

• Construction & Real Estate – Many Alberta builders and developers import materials from the U.S., including lumber, steel, drywall, and appliances. If tariffs increase costs, home construction becomes more expensive, pushing up real estate prices and slowing new developments.

• Manufacturing & Energy – Alberta’s oil and gas sector depends on U.S. machinery and equipment. If those products become more expensive due to tariffs, energy companies may face higher operating costs, making projects less profitable.

• Automotive Industry – Car dealerships and mechanics in Alberta import many parts from the U.S. Tariffs could drive up vehicle repair costs and make new cars more expensive.

Example:
In 2018, Canada placed retaliatory tariffs on U.S. steel and aluminum, which raised construction and manufacturing costs in Alberta. If similar tariffs return, it could hurt industries that rely on American imports.

2. Alberta Farmers & Ranchers Could Struggle

The agricultural sector in Alberta is heavily dependent on U.S. trade for both exports and imports. Retaliatory tariffs could lead to:

• Higher costs for farm equipment & feed – Many Alberta farmers buy U.S.-made tractors, machinery, and animal feed. Tariffs would make these essentials more expensive, reducing profitability.

• Reduced market access for Alberta beef & pork – If trade tensions escalate, the U.S. may restrict imports of Canadian beef or pork, reducing Alberta’s sales.

• Disruptions in grain trade – Alberta exports wheat, barley, and canola to the U.S. If tariffs slow cross-border trade, Alberta farmers could lose key buyers.

Example:
During past trade disputes, U.S. buyers have sourced beef from other countries (like Australia) instead of Alberta, hurting ranchers.

3. American Retaliation Against Canada’s Retaliatory Tariffs

If Canada retaliates too aggressively, Trump could double down on tariffs, making the situation even worse. This could mean:

• Higher tariffs on Alberta oil & gas – The U.S. could impose new energy tariffs, making Alberta’s oil more expensive and reducing exports.

• Increased costs for Alberta consumers – If the trade war escalates, Alberta residents could see higher prices on food, cars, and household goods.

• Economic slowdown – Retaliatory tariffs can lead to reduced investment, job losses, and uncertainty, hurting Alberta’s economy in the long run.

Example:
In 2018, Trump threatened tariffs on Canadian auto exports during a trade dispute. A similar move in 2025 could be devastating for Alberta’s economy.

4. Retail & Consumer Goods Will Become More Expensive

Many everyday products in Alberta come from the U.S. or contain American materials. If Canada imposes tariffs, these items could see price hikes:

• Groceries – Alberta imports U.S. fruits, vegetables, and processed foods. Retaliatory tariffs could make food more expensive.

• Clothing & electronics – Many consumer goods come from U.S. retailers or use American-made components. Prices could rise.

• Alcohol – If Canada reintroduces tariffs on U.S. whiskey, wine, or beer (as it did in 2018), Albertans could pay more for imported drinks.

Example:
During the last tariff dispute, prices for U.S. ketchup, whiskey, and processed foods went up in Canada, hurting businesses that rely on these imports.

In conclusion, my opinion is we need a diplomatic approach. This all out battle benefits no average citizen of this country. Tariffs are the tip of the iceberg in what could be a tumultuous 4+ years with our neighbors to the south. Trump wants companies to move there, manufacture there, and create jobs there. If we cut off our oil, they may refit their refineries on the gulf coast, who can currently process our heavy oil (which is more expensive to do, which is also why we sell at a discount) to refine other oil from other parts of the world, or right in their backyard which would be disastrous. 

We never should have gotten here, to the point where we were so reliant on one country who knows they have us. Pipelines to the coasts would have alleviated a bit of this burden and not made us so beholden to the US. And this isn’t just about oil, we are an export country and we are going to war with the biggest consumer in the world, who is also our next door neighbor. Call me crazy, but I think someone out there in this country must have the brains to figure out a better strategy. 

I am optimistic this ends well, but with every press conference I watch lately, that hope is fading. 

Chris

Against my better judgement, I am going to weigh in on the news this morning of Prime Minister Justin Trudeau stepping down as the leader of the Liberal Party. I will do that at the end of this post and share my personal thoughts. Which may or may not be a smart thing to do lol. 

First of all, this is a real estate website, so what does it mean for home owners and buyers and in Grande Prairie with this news, here is a quick summary, none of it too earth shattering.

Potential Impacts on Grande Prairie Housing Market

1. Energy Sector Influence:
   Grande Prairie’s economy is closely tied to the energy industry. A new federal government, particularly one led by the Conservatives under Pierre Poilievre, might prioritize pro-energy policies, potentially boosting local employment and housing demand. Conversely, delays in policy clarity could create temporary uncertainty.

2. Interest Rates and Lending:
   Changes in federal fiscal policies could indirectly influence interest rates set by the Bank of Canada. Grande Prairie’s housing market, where many buyers rely on mortgages, might experience shifts in affordability if borrowing costs fluctuate.

3. Population Growth and Immigration:
   Grande Prairie’s population growth, driven by affordability and job opportunities, could be influenced by changes in federal immigration policies. This might either increase demand for housing or slow it if new policies reduce immigration inflows.

4. Federal Infrastructure Spending:
   Investments in infrastructure are critical for Grande Prairie’s growth. A leadership change might either enhance or reduce funding for local projects, impacting the economy and the housing market. Under the current government, the red tape on housing starts was cumbersome, hopefully a new government will eliminate some of these barriers. 

Actionable Insights for Grande Prairie

• For Buyers: Lock in mortgage pre-approvals now to mitigate the risk of rising rates. Political uncertainty can lead to economic fluctuations, making it wise to secure financing early. If they drop you can get a new rate, but if they rise, you are locked in at the better rate.

• For Sellers: Consider listing your property earlier than you planned. Market sentiment may shift as federal policy direction becomes clearer, potentially affecting demand. Although this is tough to predict regardless of what happens. My personal opinion, not a lot will change on the housing market side in the short term, but you never know.

• For Investors: Keep an eye on federal leadership changes, particularly policies impacting energy, immigration, and infrastructure, as these will influence Grande Prairie’s economic stability and housing market.

The leadership race and potential policy shifts may have significant implications for Grande Prairie’s housing market, particularly through their impact on the energy sector, lending environment, and infrastructure investment. Staying informed and proactive will be essential in navigating these changes effectively.

Now for my thoughts on this mornings news:

For the Conservative Party and Canadians as a whole. I don’t think this is a huge win, or even a win at all, as of today at least. Trudeau running again was a best case scenario for the Conservatives going into a 2025 election. The country and his party have tired on him and turned their backs on his leadership. Who will replace him? My guess would be Mark Carney, he has an economic background and that would be something he could go head to head with Pierre Poilievre on and actually be informed and knowledgeable about. I still think the Conservatives win in a large majority, but not as large as it would have been had Trudeau not made this announcement. Chrystia Freeland will also most likely throw her hat into the leadership race, but my guess is the Liberals will want to distance themselves from anyone closely tied to the Trudeau Government, and she has been a co-face of it for the last half decade or so.  There are several other names, but none of them will get very far in my opinion. Those two are the ones you will probably hear the most in the coming weeks.

My biggest issue with all of this, is we now have a Prorogued Parliament, until the Liberals find a new leader. Canadians in the meantime get to sit in limbo while the Liberals try and right their ship. While this is nothing new in politics. Governments have done this in the past, regardless of party, and will continue to do so in the future when it suits their needs. The problem this time, is we have Donald Trump coming into office in two weeks. He has taken a hard stance against Trudeau and stood up for America first policies in the past, and has a clear mandate to do that again this time around. No matter what side of the political spectrum you sit on, it should be evident we need a leader running the country who has a four year mandate of their own negotiating and dealing with what is coming from our neighbors to the south, or at the very least a path to one. Whether that be an election immediately (which is never going to happen). Or more astutely, the Liberals and Trudeau should have made this call months ago and started this process sooner. They could have been prepared for this and wouldn’t have to hold Parliament hostage for the next two and a half months while they try to save their jobs, and Canadians face a potential trade/tariff war with the US that we can’t react to adequately in the meantime.

Once Trump takes office, there should have been a leader facing off with him, representing Canada with either a four year mandate, or like I mentioned a path to one in the future (a Liberal candidate who was prepared for an election after a rigorous vetting process and one their electorate wants. One who was settled and voted on over the previous six months, not someone who is thrown in last minute with this news today and will most likely be too late to the party to run an effective, successful campaign). Instead we get Trudeau, who is finishing up his round and driving the golf cart to the 18th hole at the Country Club, and he stopped writing his score down several holes ago. Trumps first few months in office are going to have a massive impact on Canada, and this is something a government should have been keenly preparing for with laser like precision and a plan of action on how to react for January 20th. Instead we are faced with a Prorogued Parliament until March 24th while the current government decides which way they want to go, and what is best for them in their immediate future.

The coming months will be interesting, toxic, and by the end we will all be ready for it to be over I’m sure. The writing has been on the wall for awhile with Trudeau & the Liberal Party, and I wish they put country over party a long time ago. They didn’t, and here we are. We have frozen Parliament two weeks before Trump takes office, who has threatened 25% tariffs on the country, which will have a massive impact on the economy, not just here in Grande Prairie, but all over Canada.

No matter what side of the political isle you sit on, no party should put their jobs over the Country. And all of them have, this isn’t just a Liberal issue, it’s a systematic one that all governments do, no matter the color. And we the taxpayer, once again get to foot the bill. 

Chris

As a real estate agent in Grande Prairie, I’m often asked about ways to make homeownership more affordable and financially advantageous. One strategy that has gained traction among savvy Canadian homeowners is the Smith Maneuver. Whether you’re a first-time buyer or an experienced homeowner, understanding how the Smith Maneuver works can help you maximize the financial benefits of owning real estate. As always, consult a professional before making any decisions, as I am in no way that in the financial world lol. This is just something to look into and see if it is right for you. I will include some links below on what The Smith Maneuver is, and also what a readvancable mortgage is. Feel free to reach out with any questions. 

What is the Smith Maneuver?

The Smith Maneuver is a financial strategy designed to convert the non-deductible interest on your mortgage into tax-deductible investment interest. It leverages Canada’s tax laws to make your mortgage work harder for you. This strategy is particularly appealing for those looking to build wealth over the long term while managing their housing costs more efficiently.

How Does the Smith Maneuver Work?

Here’s a simplified breakdown:

1. Set Up a Readvanceable Mortgage: The first step is to secure a readvanceable mortgage, which combines a traditional mortgage with a home equity line of credit (HELOC). As you pay down the principal on your mortgage, an equivalent amount becomes available to borrow from your HELOC.

2. Redirect Equity into Investments: Each time you make a mortgage payment, you’re reducing the principal and increasing the available credit in your HELOC. Instead of letting this equity sit idle, the Smith Maneuver encourages you to borrow from your HELOC and invest that money into income-generating or growth-oriented assets, such as stocks, mutual funds, or real estate.

3. Tax Deduction on Investment Loan Interest: The interest you pay on the borrowed funds from your HELOC is tax-deductible because the money is used for investment purposes. This creates an ongoing tax benefit.

4. Reinvest Tax Savings: To further accelerate your wealth-building, you can use the tax refunds generated from the deductible investment loan interest to pay down your mortgage faster or reinvest them.

Who Can Benefit from the Smith Maneuver?

The Smith Maneuver is best suited for:

• Homeowners with sufficient equity in their property to qualify for a readvanceable mortgage.

• Individuals with a stable income who can handle the risks associated with investing borrowed money.

• People comfortable with long-term investing and market fluctuations.

Key Advantages of the Smith Maneuver

• Tax Efficiency: Converts non-deductible mortgage interest into tax-deductible investment interest.

• Accelerated Wealth Building: Allows you to grow your investment portfolio while paying down your mortgage.

• Faster Mortgage Repayment: By reinvesting tax refunds and leveraging your HELOC, you can pay off your mortgage sooner.

Risks and Considerations

While the Smith Maneuver has many potential benefits, it’s not without risks:

• Market Volatility: Investments can lose value, especially in the short term.

• Increased Debt: Borrowing from your HELOC increases your overall debt load.

• Discipline Required: This strategy requires careful planning, consistent investing, and avoiding the temptation to use HELOC funds for non-investment purposes.

How to Get Started

1. Consult a Financial Advisor: Work with a professional to determine if the Smith Maneuver aligns with your financial goals and risk tolerance.

2. Speak to a Mortgage Specialist: Ensure you qualify for a readvanceable mortgage and understand the terms.

3. Create an Investment Plan: Decide where you’ll invest the funds and establish a strategy for managing risk.

Final Thoughts

The Smith Maneuver can be a powerful tool for Canadian homeowners looking to turn their mortgage into a wealth-building machine. However, it’s essential to approach this strategy with a clear understanding of the risks and benefits. With proper planning and professional advice, the Smith Maneuver could help you unlock new financial opportunities through your homeownership journey.

If you’re considering buying or refinancing a home and want to explore whether the Smith Maneuver is right for you, feel free to reach out. As a real estate agent, I’m here to help you navigate all aspects of homeownership in Grande Prairie. Always consult a financial professional before making any choices. 

Links: 

The Smith Maneuver 

Readvancable Mortgage

Chris

The holiday season can be a magical time of year, but it also brings unique challenges when you’re selling your home. But it also can be beneficial, less competition on the market, and generally more serious buyers out looking this time of year.  Balancing the festive spirit with creating an appealing space for potential buyers is key. If you're planning to list your home this season in Grande Prairie, here are some tips to make your property shine while still embracing the holidays. The best tip is to call me first though!

1. Keep Decorations Simple and Neutral

Holiday decorations are great for adding warmth and cheer, but too much can overwhelm buyers or distract them from your home’s best features. Opt for:

• Neutral Color Schemes: Stick to golds, silvers, and whites that complement your home’s interior.

• Minimal Decorations: A tasteful wreath, a small tree, or a garland can create a festive yet sophisticated atmosphere.

• Avoid Over-Personalization: Skip overly religious or themed decor to appeal to a broader range of buyers.

2. Showcase Winter Curb Appeal

Grande Prairie winters bring snow and ice, which can affect first impressions. Make sure your home is inviting by:

• Clearing Snow and Ice: Keep driveways, walkways, and stairs free of snow and ice to ensure safety.

• Adding Outdoor Lighting: String lights on trees or bushes to enhance curb appeal during dark winter evenings.

• Displaying Seasonal Planters: Arrange winter greenery or pinecones near your entryway for a welcoming touch.

3. Maximize Warmth and Light

Winter days in Grande Prairie can be short and cold, so creating a warm and well-lit environment is essential:

• Brighten Rooms: Open curtains, clean windows, and turn on all lights to make your home feel bright and spacious.

• Enhance Coziness: Add throw blankets, pillows, or a crackling fire (real or electric) to highlight your home’s comfort.

• Set the Mood: Play soft background music and consider scents like cinnamon or pine for a festive yet subtle aroma.

4. Keep It Clean and Tidy

With holiday activities, it’s easy for clutter to build up. Stay organized by:

• Decluttering Decorations: Remove excess items like holiday cards, wrapping paper, and extra ornaments.

• Maintaining Cleanliness: Vacuum regularly and keep surfaces spotless, especially if you’re hosting gatherings.

• Staging Strategically: Ensure your furniture and decor highlight your home’s layout and space.

5. Be Flexible with Showings

The holiday season can be busy for everyone, but accommodating buyers’ schedules is critical.

• Plan Ahead: Coordinate with your real estate agent (hopefully me!) to manage showings around your holiday commitments.

• Offer Virtual Showings: For out-of-town buyers or those unable to visit, virtual tours can showcase your home effectively.

• Allow Evening Showings: Since it gets dark early, evening viewings might appeal to buyers, especially when your home is lit and festive.

6. Highlight Winter-Ready Features

Grande Prairie buyers often prioritize homes that can handle Alberta’s cold winters. Use this to your advantage:

• Showcase Energy Efficiency: Highlight upgrades like new windows, insulation, or a high-efficiency furnace.

• Promote Cozy Spaces: Emphasize fireplaces, heated floors, or any features that make your home winter-ready.

• Point Out Storage: Show off space for winter gear, like mudrooms or garages.

Selling your home over the holidays in Grande Prairie can be a smart move—motivated buyers are often looking for quick decisions, and fewer listings mean less competition. With these tips, you can create an inviting atmosphere that helps potential buyers picture themselves celebrating next year in your home.

If you're ready to sell or need personalized advice, feel free to reach out. I’d love to help you make the most of the season!

Chris