May 7th, 2026 Mortgage Industry Update
The Bank of Canada announced on April 29th that its overnight rate will remain at 2.25%. The evolving conflict in the Middle East is causing heightened volatility and US trade policy continues to reshape global trade patterns. Financial conditions remain volatile. The prime rate remains 4.45%.
Additionally this week:
– MPC’s latest consumer survey: Nearly half of all first-time homebuyers used a mortgage broker in past five years. Many say they turned to brokers to better understand their options and the borrowing process, for recommendations on products and lenders, improved customer service.
– Royal LePage data shows that 29% of Canadians who are recently retired or nearing retirement will continue to make mortgage payments on their primary residence, nearly double the share from a decade ago and up from just 8% in 1999.
– Urbanation: In Q1 just 246 new condos were sold in the Greater Toronto Hamilton Area, down 52% yearly. No new launches of condo products during the quarter for the first time in at least 30 years. Approximately 4,295 new condos were completed and unsold as of the first quarter.
– Yardi’s Canadian National Multifamily Report: National vacancy rate rose to 5.1% in Q1, the ninth straight quarterly increase. In‑place rents averaged $1,761 and grew 2.7% yearly, down from the double‑digit gains seen earlier. New lease rents turned negative at ‑1.0% nationally.
– Colliers International: National office vacancy rate was 13.6% in Q1 2026, down 1% yearly and marking one of the most significant improvements since the COVID-19 pandemic. Canada’s industrial market, meanwhile, recorded its first national vacancy decline since 2022, down to 3.5%.
– Canada’s inflation rate surged to 2.4% in March as the Iran war triggered a record increase in gasoline prices. On a monthly basis, rose 0.9%, compared with the median expectation of 1.1% in a Bloomberg survey of economists. Headline inflation was projected to quicken to 2.6%.
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.
