July 15th, 2026 Mortgage Industry Update
The Bank of Canada announced on July 15th that its overnight rate will remain at 2.25%. The economy is showing signs of improvement. Growth is picking up and inflation is projected to ease gradually. There are still important risks and uncertainties related to the war and US trade policy. The prime rate remains 4.45%.
Additionally this week:
– Statistics Canada: Small-scale individual investors (anyone owning up to five investment properties) continue to own the largest share of rental properties across the six provinces examined: PEI, NS, NB, ON, MB, BC. Ranged from 35.9% to 57.1%.
– Urbanation: Average asking rents in Canada at $2,033 for June. Down 4.3% from 2025, marking 21st consecutive month of yearly declines. Lowest average price for June in four years. Rents have declined 6.9% over the past two years. However, ticked up 0.2% on a monthly basis.
– Statistics Canada: The country’s trade surplus hit $4.2 billion in May up from $3.4 billion in April. Third consecutive surplus and the largest the country has reported since May 2022. Exports rose 0.9% to a record $77 billion in May and are up 22% in the last four months.
– TRREB: 1,714 condo sales in June, up 14.3% yearly. 1,124 units changed hands in the 416 and 590 in the 905. Average price fell 9.5% yearly to $630,688 across the GTA. In 905 region, average condo prices fell 10.6% to $563,874, while in City of Toronto condo prices dropped 9%.
– CBRE: Canada’s office market has completed its first full year of sustained recovery, delivering the clearest signal yet that the sector’s pandemic-era correction is behind it. National office vacancy rate fell to 17.1% in Q2 2026, down from 18.7% a year earlier.
– Canadians are witnessing largest real estate correction in the country’s history. Prices fell 0.8% in Q1 2026, shedding 4.8% yearly. Since peaking in Q1 2022, prices have dropped 20.1%, rolling back to Q1 2021 levels. There’s never been anything like this at the national level.
– Bank of Canada: 9% of borrowers in GTA would not be able to refinance their mortgage at renewal. 4% of all Canadian borrowers facing similar challenge. Homeowners with five-year fixed-rate mortgages expiring next year (12% of mortgages in Canada) will face 15% increase in payment.
– TRREB: Home sales at 6,770 in June, up 9.4% yearly and 1.4% monthly. Average selling price decreased 3.9% yearly to $1,058,658. 17,282 new listings on the market in June, down 12.9% from last year. Inventory fell 13.5% as there were 27,329 total active listings in the GTA.
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.
