June 24th, 2026 Mortgage Industry Update
The Bank of Canada announced on June 10th that its overnight rate will remain at 2.25%. Economic activity in Canada has been weak and uncertainty about US trade policy persists. The conflict in the Middle East is ongoing and oil prices remain elevated. The prime rate remains 4.45%.
Additionally this week:
– Statistics Canada: Homeownership in Ontario among recent immigrants in their 5th year in Canada rose by from 35.7% in 2018 to 40.2% in 2021, an increase of over 12%. While Canadian-born individuals saw 5% decrease in homeownership rates for the same period from 50.7% to 47.8%.
– CREA: Home sales climbed 5.5% on monthly basis in May to 47,014. Down 5.1% yearly. First month this year to deliver meaningful momentum. National average sale price up 1.5% yearly to $702,079. Highest monthly reading in 2 years. First time measure crossed $700k mark in 23 months.
– Statistics Canada: Amount Canadian households owe outpaced income for the sixth straight quarter. Ratio rose 0.9% to 179.6% in this first quarter of this year. In other words, there was roughly $1.80 in credit market debt for every dollar of household disposable income.
– Statistics Canada: Total household credit market borrowing rose to a seasonally adjusted $35.5 B in Q1 2026, up $1.0 B from the previous quarter. Net originations of mortgage loans fell to $22.6 B. Mortgage borrowing slowed to its weakest pace in two years in Q1.
– Urbanation: Average asking rents dropped 4.7 per cent year-over-year in May 2026 to $2,029. It marked the 20th consecutive month of year-over-year declines. Since peaking at $2,202 in May 2024, national rents have fallen 7.8 per cent.
– Teranet: 36.6% of properties purchased in 2022 (when home prices reached record levels) and resold in 2025 were sold at a loss, reflecting both price corrections and the higher cost of carrying a mortgage today.
– Statistics Canada: Country added 88,000 jobs in May, nearly nine times the 10,000 economists had forecast. Unemployment rate fell to 6.6% from the six-month high of 6.9% recorded in April. Comes after Canada shed a net 112,000 jobs in the first four months of 2026.
– Fidelity Retirement Report: 22% per cent of retirees polled still have a mortgage, more than half of which do not expect to pay it off in under 10 years. More than 20% of retirees and 12% of pre-retirees do not expect to be able to pay off the mortgage at all.
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.
