February 17th, 2026 Mortgage Industry Update
The Bank of Canada announced on January 28th that its overnight rate will remain at 2.25%. After a strong Q3, GDP growth in Q4 likely stalled. Economic growth is projected to be modest in near term. Expects inflation to stay close to 2% target over the projection period. The prime rate remains at 4.45%.
Additionally this week:
– Statistics Canada: Total value of building permits issued in December rose 6.8% to $12.8 billion. Residential sector accounted for most of the increase, climbing $533.5 million to $8.0 billion. Came almost entirely from multi-unit housing, such as apartments and condos.
– CMHC says the pickup in housing demand will be led by Ontario and B.C. this year, where markets are expected to rebound. Forecast is calling for 489,000 home sales for 2026 with an average price of $698,000, up from 470,000 homes sold in 2025 at an average price of $680,000.
– Office of the Superintendent of Bankruptcy: Consumer insolvencies rose 2.3% yearly in 2025 to 140,457. Makes 2025 the second-busiest year on record for consumer insolvencies since tracking began in 1987, and the highest annual total since 2009. 385 Canadians filed each day.
– Urbanation: January average asking rents fell for the 16th straight month to $2,057 – the lowest level in 31 months. Annual decline of 2.0%. Average asking rents are still 12.9% above pre‑COVID levels. Average listing size shrank to 857 square feet from 943 two years earlier.
– CMHC: 2,797 mortgage consumers in the GTA were in arrears in the third quarter of 2025 compared to 662 mortgage consumers in the same time period in 2022. However, overall mortgage delinquency rate in the GTA remains relatively low at 0.26 per cent.
– TRREB: Figures for January showed condo apartment sales in the 416 at 568 transactions, while the surrounding 905 region recorded 288 deals, for a total of 856 sales. Average prices fell to $631,932 in 416 and $551,166 in 905, bringing the GTA-wide condo average to $604,759.
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.
