Mortgage Memo
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5 Key Highlights Brokers Need to Know
As geopolitical tensions continue to roil energy markets and trade uncertainty looms large, Canadian mortgage brokers find themselves navigating an increasingly complex landscape. This week's developments highlight the delicate balance between inflationary pressures from the energy shock and the deflationary impacts of economic uncertainty, creating both challenges and opportunities for strategic brokers.
Energy Shock Drives Rate Volatility
The ongoing US-Iran conflict has pushed oil prices higher, with the US now blocking Iranian ships through the Strait of Hormuz while Iran threatens passage for other nations. Canadian inflation pressures are building, though core measures remain relatively contained, and the Bank of Canada has indicated it will look through the oil price spike in the near term. Government of Canada bond yields remained volatile last week, creating uncertainty for fixed mortgage pricing.
Source: Integrated Mortgage Planners — David Larock, Apr. 13, 2026
Lock in pre-approval rates immediately for any clients purchasing within 120 days, as fixed rates continue their upward trajectory. Consider positioning variable rates more aggressively given the widening spread, but ensure clients understand the volatility risk.
Employment Recovery Shows Modest Gains
Canada created 14,000 new jobs in March, a welcome turnaround from the 110,000 jobs lost in January and February combined. However, consumer confidence has dropped to an eleven-month low as Canadians grapple with concerns about both the immediate energy shock impacts and longer-term trade uncertainty. The labour market recovery remains fragile despite the positive March reading.
Source: Integrated Mortgage Planners — David Larock, Apr. 13, 2026
Use employment data cautiously in client conversations, emphasizing the modest recovery while acknowledging ongoing uncertainty. Focus on clients with stable employment situations for new mortgage applications.
Fixed vs Variable Spread Widens
Bond market volatility has put significant upward pressure on fixed mortgage rates while variable rates remain relatively stable, increasing the potential savings from choosing variable. The bond futures market has reduced its bet on Bank of Canada rate hikes from 0.75% to 0.50% over the past two weeks. Despite the energy shock, many analysts still expect the Bank's next move to be a cut rather than a hike.
Source: Integrated Mortgage Planners — David Larock, Apr. 13, 2026
Present variable rates as increasingly attractive from a cost perspective, but ensure clients fully understand the volatility risk and have financial capacity to handle potential payment increases. Three- and five-year fixed terms remain most popular for risk-averse clients.
Mental Health Focus Amid Market Stress
Industry leaders are acknowledging the emotional toll of current geopolitical events on mortgage professionals, with many brokers struggling to focus on daily tasks while having loved ones in harm's way. The recommendation is to either take time off if possible, or compartmentalize by creating focused work blocks while avoiding news and social media. The importance of finding balance and maintaining perspective during turbulent times is being emphasized across the industry.
Source: Be The Better Broker — Dustan Woodhouse, Apr. 12, 2026
Prioritize your mental health and that of your team during these challenging times. Consider implementing focused work blocks and encourage breaks from news consumption to maintain productivity and well-being.
DLC Members Gain MLN Access
Dominion Lending Centres has partnered with MortgageLogic.News to provide free access to strategic mortgage industry data and analysis for all DLC members. The partnership aims to help brokers transform market intelligence into deal opportunities through enhanced data access and industry insights. Members must use their official DLC email addresses to activate their complimentary subscriptions.
Source: MortgageLogic.News — Rob McLister, Apr. 8, 2026
If you're a DLC member, activate your free MLN subscription immediately to gain access to additional market intelligence and competitive insights. Leverage this data to better position yourself with clients and referral partners.
This week underscores the importance of agility in uncertain times. While energy shocks and geopolitical tensions create near-term volatility, successful brokers will focus on what they can control: locking in rates for active buyers, positioning the right products for each client's risk tolerance, and maintaining their own mental health to serve clients effectively. The widening fixed-variable spread presents opportunities for those willing to educate clients on the trade-offs.
These updates are a high-level summary. For deeper insights, subscribe to Mortgage Logic News via our ABW Agent Intranet under our corporate plan.