Rocket Mortgage is officially shutting down its Canadian operations, with the U.S. lending giant set to exit the market entirely by June 27. The move comes as its parent company, Rocket Companies, shifts focus back to the American housing market, where it has been a dominant player for nearly 40 years.
In a statement, Rocket Mortgage Canada confirmed the decision, saying, “The decision aligns with our parent, Rocket Companies, focusing on growing in the American housing market. While this means stepping away from our lending business in Canada, we thank our team members who have helped us expand over the last five years. Their hard work and passion have helped thousands of Canadians achieve the dream of homeownership, and we appreciate all their contributions.”
A handful of employees will be absorbed into Rocket’s other Canadian businesses, like Lendesk and Rocket Innovation Studio, but most of the staff will be laid off. Existing mortgage files in progress will continue as planned, with Rocket assuring clients they’ll be supported through the transition.
Windsor city councillor Renaldo Agostino addressed speculation that Rocket’s exit was tied to the recent trade war launched by U.S. President Donald Trump. “There’s talk that this had something to do with Trump and the tariffs. It doesn’t,” he said in an interview with AM800’s The Dan MacDonald Show. “Rocket is still going to have a presence in the country – just that end of their business [mortgage lending] will not be here.”
Rocket Mortgage entered Canada in 2020 through a partnership with Edison Financial, fully rebranding the brokerage under the Rocket name by 2022. It officially started lending in Canada in 2023 and even launched a broker channel, Rocket Mortgage Pro, in 2024. But just a year later, the company has decided to pack up and leave.
Is Rocket the Canary in the Coal Mine for Canada’s Housing Market?
The real question here is: does Rocket Mortgage’s exit signal deeper trouble in Canada’s real estate market?
Canada has been riding an unprecedented housing boom for years, fueled by low interest rates, record immigration, and demand far outpacing supply. But with affordability at historic lows, mortgage defaults creeping up, and higher borrowing costs squeezing buyers and homeowners, is the tide turning?
Rocket Mortgage is known for its aggressive, high-volume lending strategy. If it no longer sees enough profitability in Canada to justify staying, that raises concerns about the overall health of the market. Are other lenders seeing similar warning signs? Are we nearing the tipping point where prices correct, lending tightens, and overleveraged homeowners start feeling the pain?
Some will argue that Rocket Mortgage simply couldn’t compete with Canada’s heavily regulated banking system, where the big five banks dominate the mortgage space. But others might see this as the first major player pulling out before things get worse.
One thing is certain: if the housing market were in great shape, Rocket Mortgage wouldn’t be leaving.
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