Turn your mortgage into a wealth-building tool. Smith Manoeuvre strategies, tax-smart planning, and honest math from two Canadian mortgage strategists.
7 Money Moves to Make Before August 19, When 50% US Tariffs Hit Canada
The Canadian dollar dropped 3.2% against the USD within hours of the announcement. That currency move alone will cost you more on everything priced in American dollars, from software subscriptions to cross-border shopping, before the tariffs even land. Here's what to lock in or shift by mid-August.
1. Lock your mortgage rate if you're renewing between now and November.
Variable rates track the Bank of Canada's overnight rate. Tariff-driven inflation pushes the BoC toward rate hikes, not cuts. If your renewal window opens before year-end, get a 120-day rate hold now. TD, RBC, and Scotiabank all offer this. Free.
2. Buy US dollars now if you have planned cross-border spending in the next six months.
The loonie will weaken further as tariffs bite exports. If you're paying US tuition, buying property in Arizona, or travelling south this winter, convert CAD to USD at today's rate. Norbert's gambit through Questrade or IBKR cuts conversion fees to under 0.2%.
3. Prepay big-ticket items that rely on cross-border supply chains.
Cars, appliances, electronics. Anything assembled in Ontario or shipped from the US will cost 8-15% more by September once manufacturers pass tariff costs through. If you were buying a furnace this fall, buy it this month.
4. Move cash reserves out of USD-hedged ETFs.
Currency-hedged funds (ticker suffix ".H") protect you when the loonie strengthens. Right now it's weakening. Unhedged versions of VFV, XUU, and VTI will outperform their hedged twins as the CAD slides.
5. Check your RRSP for overweight US equity exposure.
A falling loonie amplifies gains on unhedged US stocks, which sounds good until you're 70% allocated to a market about to fight a trade war with your own economy. Rebalance toward Canadian dividend payers or international ex-US.
6. Accelerate any planned equipment purchases for your business before August 19.
Capital cost allowance rules let you write off the expense. But if the price jumps 12% in September, you're financing that increase at your operating line rate (currently 8-9% at most banks).
7. Stock your freezer.
Beef, pork, and produce that cross the border multiple times before reaching your table will reprice fast. Costco runs are cheaper now than in October.
The Canadian dollar dropped 3.2% against the USD within hours of the announcement. That currency move alone will cost you more on everything priced in American dollars, from software subscriptions to cross-border shopping, before the tariffs even land. Here's what to lock in or shift by mid-August.
1. Lock your mortgage rate if you're renewing between now and November.
Variable rates track the Bank of Canada's overnight rate. Tariff-driven inflation pushes the BoC toward rate hikes, not cuts. If your renewal window opens before year-end, get a 120-day rate hold now. TD, RBC, and Scotiabank all offer this. Free.
2. Buy US dollars now if you have planned cross-border spending in the next six months.
The loonie will weaken further as tariffs bite exports. If you're paying US tuition, buying property in Arizona, or travelling south this winter, convert CAD to USD at today's rate. Norbert's gambit through Questrade or IBKR cuts conversion fees to under 0.2%.
3. Prepay big-ticket items that rely on cross-border supply chains.
Cars, appliances, electronics. Anything assembled in Ontario or shipped from the US will cost 8-15% more by September once manufacturers pass tariff costs through. If you were buying a furnace this fall, buy it this month.
4. Move cash reserves out of USD-hedged ETFs.
Currency-hedged funds (ticker suffix ".H") protect you when the loonie strengthens. Right now it's weakening. Unhedged versions of VFV, XUU, and VTI will outperform their hedged twins as the CAD slides.
5. Check your RRSP for overweight US equity exposure.
A falling loonie amplifies gains on unhedged US stocks, which sounds good until you're 70% allocated to a market about to fight a trade war with your own economy. Rebalance toward Canadian dividend payers or international ex-US.
6. Accelerate any planned equipment purchases for your business before August 19.
Capital cost allowance rules let you write off the expense. But if the price jumps 12% in September, you're financing that increase at your operating line rate (currently 8-9% at most banks).
7. Stock your freezer.
Beef, pork, and produce that cross the border multiple times before reaching your table will reprice fast. Costco runs are cheaper now than in October.
Read Next
Trump Sells Tariffs in Michigan While the Gordie Howe Bridge Opens Without Him
Poll Says Canadian Economic Sentiment Is Improving. The Fundamentals Say Otherwise.
Canadians Shrug Off Trade War as Growth and Energy Worries Ease
Ontario's Rent Control Exemption Now Covers 400,000+ Units: Two Portfolios, Two Underwriting Models