Economic uncertainty caused by tariffs has some lenders avoiding Windsor projects, officials say

Economic uncertainty caused by U.S. President Donald Trump's trade war with Canada is causing some banks to pause lending to Windsor projects.

Downtown councillor Renaldo Agostino said at a recent public meeting that a developer told him some banks aren't prepared to back projects in the city.

“The banks, including one of the big four, are looking away from Windsor," he told the audience.

Windsor Mayor Drew Dilkens said he's also heard about developers having issues securing loans.

"There are lenders out there, including Schedule A banks, who have looked at Windsor and said with the tariff issue in place, we don't feel comfortable adding to our loan book," said Dilkens.

"And so that means that they're not funding projects in Windsor at the moment."

Dilkens said the market wants to see certainty and urged the U.S. and Canadian governments to reach a deal on tariffs.

With tens of thousands employed in the automotive and manufacturing industries, the city has been identified as particularly vulnerable to tariffs.

Brent Klundert, president of the Windsor-Essex Home Builders Association, said financial institutions are being cautious.

"Across the board in Ontario, things are definitely tightening on the residential side when it comes to financial institutions," said Klundert.

Earlier this year, Windsor celebrated hitting the province's housing target with more than 2,157 unit started in 2024.

That number includes apartment units, townhouses, detached and semi-detached homes.

But starts this year have fallen drastically, with data from the Canada Mortgage and Housing Corporation showing 871 units started as of September this year.

That's down from 1,729 units across the same period last year.