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The Bank of Canada announced on March 18th that its overnight rate will remain at 2.25%. The war in the Middle East has increased volatility in global energy prices and financial markets, and heightened the risks to the global economy. There remains high uncertainty. The prime rate remains 4.45%.

Additionally this week:

– Century 21 Study: The average Canadian buyer has a budget of nearly $677,000 and is looking for a three-bedroom home with 2.5 washrooms. 55% of respondents said they were not living in their ideal home, with 63% desiring more space.

– Royal LePage forecasts the median price of a single-family home in Canada’s so-called recreational or vacation regions to rise 4% year-over-year to $604,552. It said the weighted median price of a single-family home increased 4.3% year-over-year in 2025 to $581,300.

– Ontario extends HST relief from first-time buyers to all purchasers of new homes up to $1.5 million. Set to offer rebates of up to $130,000 on qualifying new units, tapering for homes above $1.5 million between April 1, 2026 and March 31, 2027.

– According to a report by the City of Toronto published last May, the city received 750 multiplex building permit applications between May 12, 2023 and November 4, 2024, more than triple the number submitted between 2020 and 2022.

– OSFI: As many as 150,000 Canadian borrowers will have trouble refinancing their mortgages over next two years as they face a combination of declining home values and higher interest rates. Still a small portion of the approx 2.1 million mortgages set to renew over next two years.

– Instead of the gains it projected as recently as December, TD Bank now expects national home sales to fall 1.8% on average this year, with national benchmark price edging 0.3% lower. CREA still forecasts a 5.1% rise in 2026 resales and a 2.8% increase in national average price.

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.