Aug 20th, 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: Inflation rate climbed to 3% in July, matching the top of the Bank of Canada’s target range. Was up from 2.8% in June, with gasoline once again being the primary driver. On a monthly basis, prices rose 0.5%.
– Fraser Institute: Average Canadian family directed 42% of its income to governments in 2025, more than it spent on housing, food, and clothing combined (only at 36%). Family earning an average income of $121,111 paid $50,721 in total taxes last year.
– Statistics Canada: Total value of building permits rebounded $2.3B to $14.9B in June. 18.5% monthly increase that erased combined declines recorded in April and May. Non-residential sector climbed $1.8B to $6.8B, while residential sector contributed $479.7M gain to reach $8.1 B.
– Urbanation: Canada’s national average asking rent rose to $2,037 in July, up 0.2% from June. Marks 4th straight monthly gain since rents hit a 35-month low in March. Marked 22nd straight month of year-over-year decline. However, the annual decline narrowed to 4.0%.
– OSB: Canadian insolvency filings reached 13,254 in June, the second-highest monthly total ever recorded and the sixth consecutive year of June-over-June growth. Total filings were 11.5% higher than a year earlier and more than double the June 2020 level.
– Statistics Canada: Economy added 75,100 jobs last month while unemployment rate hit its lowest level in two years. Rate edged down to 6.4% from 6.5% the previous month. Economists surveyed were expecting employment increased by 20,000, with jobless rate holding steady at 6.5%.
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.
