If Rates Fall, These 3 TSX Stocks Could Rally First

Rate cuts can change the market’s mood in a hurry. When borrowing costs fall, investors often become more willing to buy stocks tied to lending, asset prices, dividends, and future growth. Lower rates can also ease pressure on borrowers, lift bond and equity markets, and make financial stocks look more attractive again. The first stocks to rally aren’t always the safest ones. Often, they’re the names where sentiment stayed low, but the business still has a clear path to better earnings.

FSZ

Fiera Capital (TSX: FSZ) fits that setup. The Montreal-based company manages money for institutional clients, private wealth clients, and private-market investors. That’s why falling rates could help. Lower rates can lift bonds, stocks, and investor confidence. That could support Fiera’s assets under management (AUM) after a choppy period. The company ended the first quarter of 2026 with $160.2 billion in AUM. That was down from $164.1 billion at the end of 2025 and $161.6 billion a year earlier. So, this isn’t a perfect growth story, but it does mean expectations already look low.

The latest results were mixed. In the first quarter of 2026, Fiera stock reported revenue of $153.3 million, down from $180.1 million in the previous quarter and $162.9 million a year earlier. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) came in at $42.7 million, down 21.9% from the fourth quarter, partly as performance fees were stronger in that prior period.

Still, the adjusted EBITDA margin reached 27.9%, showing the business can remain profitable through weaker conditions. Net earnings were $2.8 million, down from $21.8 million a year earlier. The stock also offers a high yield, which could attract income investors if rates fall.

EQB

EQB (TSX: EQB) offers a different kind of rate-cut opportunity. It’s the parent company of Equitable Bank and EQ Bank, with operations across personal banking, commercial banking, mortgages, deposits, and digital banking. A lower-rate environment could help EQB in several ways. It could support housing activity, improve borrower confidence, and reduce some stress around mortgage demand. EQ Bank’s deposit growth also gives the company a useful funding base.

In the first quarter of 2026, EQ Bank deposits reached $9.94 billion, up 10% year over year. Those deposits represented 27% of total deposit principal, which matters because a strong digital deposit base can help fund loan growth.

The latest quarter also showed momentum. EQB’s earnings per share (EPS) rose 48% sequentially, while return on equity improved to 11.1%. Its common equity tier-one capital ratio stood at 13.6%, giving it a solid cushion. The company also raised its quarterly dividend to $0.59 per share, up 4% from the prior quarter and 16% from the year before.

GWO

Great-West Lifeco (TSX: GWO) brings the highest-quality profile of the three. The company operates through major brands such as Canada Life, Empower, and Irish Life, offering insurance, retirement services, wealth management, benefits, and asset-management products.

Great-West could benefit if lower rates lift markets and investor confidence. Its scale is massive. In the first quarter of 2026, total client assets reached $3.3 trillion, including $1.1 trillion in higher-margin assets under management or advisement. That gives the company a deep earnings base tied to retirement and wealth markets.

The first-quarter results were strong, too. Great-West reported 20% year-over-year base earnings growth and base return on equity above 19%. Average client assets rose 9% in Retirement and 14% in Wealth. Its U.S. business continued to deliver double-digit base earnings growth, helped by Empower. That makes GWO a cleaner financial stock than many smaller rate-sensitive names.

Bottom line

If rates fall, financial stocks could come back into favour quickly. All three of these companies could benefit, and all three offer income from even $7,000 while you wait.

None is guaranteed a winner. But if investors start betting on lower rates, these could be among the financial names to rally first.