April 1st, 2026 Mortgage Industry Update
The Bank of Canada announced on March 18th that its overnight rate will remain at 2.25%. The war in the Middle East has increased volatility in global energy prices and financial markets, and heightened the risks to the global economy. There remains high uncertainty. The prime rate remains 4.45%.
Additionally this week:
– Statistics Canada: Household debt slipped 0.1% (-$2.5B) to $3.23T in January. Remains just off the record high set a month prior, and came in 4.5% (+$138.2B) higher than last year. Outstanding mortgage credit climbed 0.2% (+$3.8B) to $2.4T in January, up 4.8% (+$109.5B).
– Statistics Canada: Retail sales up 1.1% in January to $70.7B, led by a 2% gain at motor vehicle and parts dealers. Core retail sales – excluding gas stations and motor vehicle and parts dealers – rose 0.9%, while volumes climbed 1%. Food and beverage retailers saw a 0.6% drop.
– Canada’s key bond benchmark for fixed mortgages surged again this week, with the five-year Government of Canada yield testing levels not seen since last summer as markets grappled with fresh Iran tensions and a darker global outlook. Marks highest level since July. Stands at 3.2%.
– Nanos Research: Some 52% of Canadians say the country should accept fewer people into the country, while 35% believe it should accept the same amount. Even as tighter immigration policies bring population growth to halt. Fewer than 1/10 said Canada should accept more immigrants.
– OREA Poll: 42% of Ontarians believe it is unfair to pass development charges onto homebuyers, 71% agree that development charges make housing less affordable. Only 22% of Ontarians polled believed municipalities are transparent about how development charge funds are spent.
– Statistics Canada: Population at 41,472,081 as of January 1. Down 103,500 people, or 0.2% quarterly. Roughly 102,000 over 2025 as a whole. Drop of more than 171,000 non‑permanent residents. Temporary residents down by 171,296. Canada’s first annual population decline on record.
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.
