January 13th, 2026 Mortgage Industry Update
The Bank of Canada announced on December 10th that its overnight rate will remain at 2.25%. The Bank expects final domestic demand will grow in Q4, but with an anticipated decline in net exports. Overall growth is forecast to pick up in 2026, although uncertainty remains high. The prime rate remains 4.45%.
Additionally this week:
– TRREB: In December sales fell 8.9% year-over-year to 3,697 transactions, while new listings edged up 1.8% to 5,299. Average prices slipped by 5.1% on a year-over-year basis, coming in at just over $1 million.
– For calendar year 2025, GTA realtors reported 62,433 home sales through TRREB’s MLS – down by 11.2% compared to 2024. New listings amounted to 186,753 – up by 10.1% yearly. Annual average selling price in 2025 was $1,067,968 – down by 4.7% compared to $1,120,241 in 2024.
– Indeed Hiring Lab’s 2026 Canadian Jobs & Hiring Trends Report described 2025 as “soft, but fairly stable”. It found job vacancies easing from 3.1% in Q3 2024 to 2.8% in Q3 2025, with postings on Indeed essentially flat heading into year‑end.
– Statistics Canada reported that real gross domestic product fell 0.3% in October, erasing September’s 0.2% gain and marking the largest monthly drop in almost three years.
– Rentals.ca: Despite declining rents — a drop of 3.1% yearly in November to $2,074 in Canada — rents are still 3.2% higher than three years ago. 62% of renters say over 30% of their net income goes toward rent, while 1/3 report spending more than half of their income on housing.
– New report from Liv.rent: Newcomer arrivals fell 19% in the first half of the year, with the decline widening from 14% in the first quarter to 23% in the second. Ontario, Alberta and British Columbia saw the largest drops.
Stay tuned for the next update!
For any questions and concerns please do not hesitate to call Harpreet Singh The Mortgage King at (416) 795-1919.
