While the actual impact of tariffs is still unknown, the threat of new tariffs has caused savvy Canadian investors to step back, Shelton said.

“When you start adding those tariff threats and actual tariffs and exchange rates, what I’m seeing is Canadians are taking a little bit more of a pause. The cost of materials, including our steel, lumber, and appliances, is still very much elevated here in Michigan. With trade policies that are here because we’re so close to the border, it pushed those new construction prices significantly higher.

“So that impacts affordability for everybody, not just cross-border buyers. As a broker, I’m seeing how it ripples through that financing side.”

Mortgage broker Matt Gouge says high prices and rates are causing buyer hesitation, especially in California, but underlying demand remains strong.https://t.co/8rvCRZ2LYt

— Mortgage Professional America Magazine (@MPAMagazineUS) July 30, 2025

Whether it’s Canadian buyers or local Michiganders looking to move forward with a mortgage loan, Shelton believes it comes down to finding creative solutions to combat some of the rate and affordability challenges.

“We’re crafting more creative solutions for Canadians who still want to buy,” she said. “Bridge loans are helping them navigate dual currency challenges. But on the other hand, Michigan residents are also being squeezed by these higher costs and interest rates that are still hovering in the high sixes to low sevens. We’re seeing more temporary buydowns and down payment assistance for local buyers.”