Canada real estate, exports to experience significant Brexit impact - analysts

The historic “leave” vote in Britain’s Brexit poll last week plunged governments worldwide into a pit of economic and political uncertainty, and the ripples of the referendum will have unmistakable effects on Canada’s real estate and export segments, according to officials and observers.
As reported by Robin Levinson King for the Toronto Star, BMO Nesbitt Burns warned that the full-blown turmoil currently battering global markets post-Brexit would apply a strong downward pressure on interest rates.
“In that event, the Fed will remain on ice even longer and Canadian rates will again probe all-time lows, keeping mortgage rates at an extremely low ebb and thus further fanning the flames in the domestic housing market,” BMO chief economist Douglas Porter and senior economist Robert Kavcic said in their joint report a few days before the polls.
Exports would also suffer, as Canada—which exported nearly $16 billion in products to the U.K. last year alone—might no longer enjoy the benefits of the U.K.’s trade deal with the EU.
The U.K.’s withdrawal from the union means that it would have to undergo the arduous and potentially decades-long process of negotiating a new and separate trade agreement with Canada.
Prior to the referendum, Finance Minister Bill Morneau advised Canadian nationals and businesses with investments in the U.K. to start rethinking their plans, as they might experience headwinds due to the global financial upheaval wrought by Brexit.

Related Stories:

Economic aftershocks of Brexit will keep Canada mortgage rates at record lows

Brexit could further inflame Canada's already overheated housing—BMO

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate

Investment Hot Spots:
Gloucester, Dolbeau-Mistassini, Hemmingford, Neuanlage, Spalding


  • by Kread 2016-06-27 10:59:50 AM

    What a lot of nonsense. Please tell me why it would have any impact on Canadian interest rate policy.
    The fear mongering on this is ridiculous. Also, very easy to move the trade deal with a little editing, which might
    be even better for Canada. I am buying British pounds on the downturn.

Get help choosing the best mortgage rate

Just fill in a few details, and we'll arrange for a Mortgage adviser to help you find the best mortgage for your needs

  • How soon do you want a mortgage?
  • Name
  • Where do you live?
  • Phone number
  • E-mail address


Is a T.O foreign sales tax a good idea?