March 3rd, 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: The national economy contracted by more than expected in the fourth quarter as GDP slipped by 0.6%. Figures took overall growth for 2025 to 1.7%. That marked the slowest pace of yearly growth since the first year of the COVID-19 pandemic.
– A new BMO retirement survey found Canadians now pegged the comfortable retirement number at $1.7 million, up from $1.54 million a year earlier, with 36% doubting they would ever hit that target.
– RBC: 64% of millennials anxious about financial future and 57% said they have little/no money left after covering monthly bills. Nearly 6/10 do not feel financially secure, while 45% dipped into savings over past year to stay afloat. 40% worried they would never pay off debts.
– BILD: Just 269 new homes changed hands across GTA in January. Down 36% annually, 80% below 10‑year average. Condos accounted for only 85 of those sales, 50% lower than January 2025 and 89% beneath decade norm. Single‑family sales fell to 184 transactions, 26% below last year.
– Equifax: Mortgage debt hit $1.95 trillion in Q4 2025, a 2.6% annual increase. Average new mortgage amounts have continued to rise, hitting $363,778 for all homebuyers (a four per cent increase) and $441,301 for first-time buyers (a five per cent increase).
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.
