February 10th, 2026 Mortgage Industry Update
The Bank of Canada announced on January 28th that its overnight rate will remain at 2.25%. After a strong Q3, GDP growth in Q4 likely stalled. Economic growth is projected to be modest in near term. Expects inflation to stay close to 2% target over the projection period. The prime rate remains at 4.45%.
Additionally this week:
– Statistics Canada: Jobless rate slipped to 6.5% in January, its lowest level since Sep 2024. Move is expected to strengthen the case for the Bank of Canada to sit tight on interest rates through 2026 rather than deliver more relief for borrowers. Fell 0.3% from December’s 6.8%.
– Avison Young: For the first time in seven years, Toronto’s office market saw more space leased than vacated in 2025. Net absorption turned positive across the region in 2025 after four straight years in the red, with overall availability edging down to 19.2% from 21.2%.
– TRREB: Home sales for January fell 19.3% yearly to 3,082 sales. Average selling price dropped 6.5% to $973,289, falling below the $1 million mark for the first time since January 2021. Active listings up 8.1% to 17,975. Average listing days on the market rose 21.6% to 45 days.
– BMO’s latest Retirement Survey: 2/3 say saving and investing for retirement have been harder for them than it was for their parents. Concern most pronounced among millennials, followed by Gen X, Gen Z, boomers. 77% believe retirement would be tougher for the generation after them.
– New projections from Statistics Canada showed the country rising from 41.7 million people in 2025 to between 44 million and 75.8 million by 2075, depending on growth assumptions, with a central medium path of 57.4 million.
– Office of the Superintendent of Financial Institutions leaving the mortgage stress test unchanged, keeping that qualification rule at its current level of 5.25% or two points above a borrower’s contract rate, whichever is higher.
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.
