July 9th, 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: National economy snapped back to life in April. Real gross domestic product (GDP) rose 0.5%. That’s the fastest monthly growth rate since July 2025 and ahead of the agency’s earlier estimate of 0.4%.
– RBC Economics: Canada’s housing affordability improved for ninth consecutive quarter in Q1 2026, reaching its best position since early 2022, though suggests the window for further gains may be narrowing. National aggregate affordability measure fell 1.4% to 53% in Q1 2026.
– Statistics Canada: Recent immigrant first-time buyers generally earned less than Canadian-born first-time buyers, yet purchased more expensive homes in every province. Points to more housing-heavy path to wealth-building, with newcomer buyers more likely to carry larger mortgages.
– The City of Toronto secured up to $1.5 billion in federal and provincial infrastructure funding, under the Canada-Ontario Partnership to Build, enabling Toronto development charge reductions of 40 to 60% across most residential unit types through 2029.
– The Bank of Canada has confirmed it will keep its 2% inflation target unchanged as it finalizes a renewed monetary policy framework agreement with the federal government, due before the end of 2026.
– Economists in a Bloomberg survey now see Canada’s economy expanding just 0.7% this year after shrinking in the first quarter. If it comes to pass, it would be the weakest yearly pace of growth since 2015, outside the COVID-19 pandemic.
– MPAC: Homes valued under $500,000 now account for about 24% of Ontario’s real estate market, up from 17% in 2022. Still well below that of a decade ago, which was 67%. Share of homes valued over $1 million has dropped from the 2022 peak of 35% to about 25% today.
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.
