The Trump Tariffs Hit Vancouver Real Estate with Dustan Woodhouse

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Trump’s shocking 25% tariffs, unprecedented economic uncertainty, and a trade assault on Canada with no clear demands…and we are only mid week. Gulp.

Mortgage industry veteran Dustan Woodhouse sits down with Adam & Matt to discuss the immediate challenges reshaping Vancouver’s real estate landscape in early 2025. From Warren Buffett calling tariffs “an act of war” to Dustan’s surprising reversal on fixed vs. variable mortgages in 2025, this conversation unpacks the hard realities facing our housing market and the larger Canadian economic landscape.

Is this the tipping point that transforms Vancouver’s real estate landscape for decades to come? Will the traditionally resilient Vancouver market once again defy economic gravity? And with uncertainty becoming the norm rather than the exception, how should sellers, buyers and investors position themselves for what’s coming next? Don’t miss this timely, insightful conversation!

The Mortgage Market in 2025: How to Navigate Rate Uncertainty and Buy With Confidence in Metro Vancouver

In this must-listen episode of the Vancouver Real Estate Podcast, we sit down with mortgage industry expert Dustan Woodhouse for a clear-eyed look at the Canadian mortgage landscape in 2025—and what it means for buyers, sellers, and investors in Metro Vancouver.

As inflation stabilizes and interest rate cuts remain uncertain, potential homebuyers are asking: Should I buy now or wait? Are fixed or variable mortgage rates a smarter move today? How do I know if I’m making the right move financially?

This episode tackles those questions head-on, with Dustan drawing on his decades of experience to deliver straight answers, practical frameworks, and a calming presence for anyone feeling overwhelmed by the current mortgage market. If you’re navigating financing in Vancouver’s dynamic real estate environment, this conversation delivers the tools and perspective you need to make confident, informed decisions.

Stop Timing the Market — Time the Mortgage Instead

One of the central themes of the episode is a reality check: trying to time the housing market is not only incredibly difficult—it’s often unproductive. According to Dustan, “Trying to pick the top or bottom of the market is a fool’s errand.” Instead, buyers should focus on one thing: the monthly payment they’re comfortable with.

He explains that decisions should be driven not by predictions, but by preparation. “If the math works, the math works,” he says. Whether you’re buying a principal residence or investment property, the key is to understand your budget and lock in a payment you’re comfortable with for the long term. That might mean choosing a five-year fixed, despite rate cut speculation, simply for peace of mind.

This insight is especially relevant for Vancouver buyers who are often influenced by media narratives about market timing, rising interest rates, and potential crashes. Dustan’s advice? Ignore the noise. Focus on personal affordability and long-term planning. The right time to buy is when you’re financially and emotionally ready.

Fixed vs. Variable — The Debate Isn’t What It Used to Be

Dustan brings nuance to the fixed-versus-variable rate debate that’s been dominating mortgage conversations since rates began rising sharply in 2022. In the current climate, he sees a significant shift in borrower behavior: “90% of clients are locking into five-year fixed rates,” he notes.

But that doesn’t mean variable is dead. Instead, it highlights a more strategic approach to financing. For some borrowers—especially those who want maximum flexibility—variable rates still make sense. However, Dustan emphasizes that the decision should be based on risk tolerance and lifestyle, not short-term market projections.

He also points out that the Canadian mortgage market is deeply psychological. “There’s a lot of peace of mind in a fixed rate,” Dustan says. And for many borrowers burned by rapid rate hikes, that peace of mind now outweighs the potential savings of going variable.

Buyers in Metro Vancouver, especially those entering the market for the first time, should weigh stability vs. flexibility. And they should do it in conversation with experienced mortgage brokers who understand not just rates, but client goals.

The Underused Advantage of Pre-Approval

A critical insight shared in the episode is the often-overlooked value of mortgage pre-approval. According to Dustan, too many buyers treat pre-approval as a formality rather than a planning tool.

He encourages buyers to take the pre-approval process seriously—not just to secure a rate hold, but to understand their true financial picture. “It’s not about what you qualify for, it’s about what you’re comfortable with,” he explains.

Pre-approvals also help guard against last-minute surprises, especially in a changing market. In competitive environments like Vancouver’s, where subject-free offers are common, being fully pre-approved can mean the difference between securing a property or losing it.

Pre-approval also gives leverage. With a solid mortgage commitment in hand, buyers can negotiate more confidently and act faster.

The Psychology of Buying in an Uncertain Market

Throughout the conversation, Dustan returns to the emotional side of buying and borrowing. He acknowledges the stress buyers face in high-rate environments and pushes back against fear-based decision making.

“People are still buying homes,” he says, “but they’re taking longer to do it.”

He encourages listeners to slow down, ask better questions, and make values-based decisions. Rather than chasing rate drops or worrying about worst-case scenarios, buyers should ask: Does this home fit my life? Is the monthly payment sustainable? Am I financially stable enough to weather the ups and downs of a rate cycle?

These questions, he argues, lead to better decisions than trying to outsmart the market.

Vancouver’s Real Estate Context in 2025

The Vancouver market continues to challenge buyers with high prices and low inventory. But Dustan cautions against letting that discourage planning. With rates still elevated compared to pandemic lows, many buyers are waiting for a “better time.” But that may not come in the form they expect.

“People think rates are going to fall off a cliff. I don’t think that’s happening,” Dustan says. While modest rate reductions could be coming, a return to sub-2% rates is highly unlikely. Instead, buyers should adjust expectations and plan within a more “normal” range of rates.

He also emphasizes that Vancouver’s fundamentals remain strong. The combination of immigration, land constraints, and economic stability means that demand for real estate is likely to continue—making long-term ownership a sound investment.

Frequently Asked Questions

Should I buy real estate in Vancouver now or wait for interest rates to drop?

• It depends on your personal financial situation and readiness. Waiting for rates to drop could mean missing opportunities, especially if home prices rise while you wait. Focus on your monthly payment comfort level and long-term goals rather than trying to time the market.

Is a fixed or variable mortgage better in 2025?

• Most borrowers are choosing five-year fixed mortgages for stability, but the right product depends on your risk tolerance and financial plans. Speak with a mortgage broker to understand which option best fits your needs.

What does a mortgage pre-approval actually do?

• A pre-approval gives you clarity on what you can afford and often secures a rate hold for 90–120 days. It’s a critical step that helps you shop with confidence and move quickly in a competitive market like Vancouver.

Are people still buying homes despite high interest rates?

• Yes, though buyers are more cautious and taking longer to make decisions. Many are prioritizing stability and affordability over speculation or fear-based decision-making.

Will interest rates fall significantly in 2025?

• Modest rate cuts are possible, but a return to pandemic-era lows is unlikely. Buyers should plan for a future where 4–6% rates are considered the norm, not the exception.

Last updated April 7 2025 by Adam Scalena PREC