Nov 13th, 2026 Mortgage Industry Update
The Bank of Canada announced on October 28th that its overnight rate will rise to 2.50% from 2.25%. Marks the first increase in more than three years. Mainly due to high energy prices. Growth is expected to slow in the fourth quarter of 2026, before picking up again in 2027. The prime rate increases to 4.70% from 4.45%.
Additionally this week:
– The federal government has proposed an extension of the ban on non-resident foreign homebuyers for a further two years, but says it would exclude new residential properties from the policy. Revealed that the government intends to renew the measure until January 1, 2029.
– Statistics Canada: Developer prices for newly built condominium apartments fell 0.6% nationally in Q3. Decline driven largely by softening in Toronto and Vancouver, two markets that together represent more than 80% of the nine-city composite. Quarterly drop in Toronto was 0.8%.
– TRREB: Sales fell 7.9% in October to 5,603. New listings fell 11.9% yearly to 14,173, while total active inventory stood at 25,098 properties. Average selling price declined 2.7% to $1,024,108, with the Home Price Index Composite benchmark down 4.3% over the same period.
– Statistics Canada: National economy failed to grow for a second consecutive month in August. GDP was unchanged. 1.4% drop in wholesale trade and 0.2% fall in public sector aggregate, its first decline in six months, outweighed gains in retail trade, manufacturing, construction.
– PwC Canada and the Urban Land Institute: Commercial real estate investment reached $16.2 billion in the second quarter of 2026, its highest level since early 2022. Canadian investors’ willingness to buy property has also reached its strongest level in 15 years.
– CMHC Residential Mortgage Industry Report: Mortgage arrears in Ontario are expected to keep rising until the middle of next year, with British Columbia and Atlantic Canada set to see delinquencies climb at a more modest pace. However, overall mortgage stress is still contained.
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.
