May 20th, 2026 Mortgage Industry Update
The Bank of Canada announced on April 29th that its overnight rate will remain at 2.25%. The evolving conflict in the Middle East is causing heightened volatility and US trade policy continues to reshape global trade patterns. Financial conditions remain volatile. The prime rate remains 4.45%.
Additionally this week:
– Urbanation: Average asking rents across Canada fell to $2,008 in March, 35-month low, with the 5.3% yearly decline representing largest annual drop in 5 years and 18th consecutive month of falling rents. Compared to peak in May 2024, average rents have declined by $194, or 8.8%.
– Canadian economy has shed 112,000 jobs so far this year, the weakest four-month stretch since the COVID-19 pandemic in 2021. Employment fell by 17,700 in April, pushing the unemployment rate up to 6.9%. Economists surveyed by Bloomberg were expecting an increase of 10,000 jobs.
– CMHC delivered a record-setting performance in 2025. Facilitated financing for more than 361,000 housing units through its commercial products. Mortgage loan insurance extended to homebuyers surged to 64,000 approvals last year, up from 49,000 in 2024. That’s a 31% jump.
– Statistics Canada: Millennials were twice as likely to live with their parents in 2021 than baby boomers were at the same age. 16.3% of millennials aged 25 to 39 were living with parents, up from 8.2% of baby boomers of the same age in 1991.
– TRREB: 5,946 homes sold last month, up 7% annually. Sales also increased 6.1% on seasonally adjusted basis from March. Average selling price was down 4.9% annually to $1,051,969. 17,097 new listings, down 9.3%. Inventory decreased 6.4% as there were 25,110 total active listings.
– Roughly 46,900 businesses shuttered in January, about 1/20 in Canada. Abrupt surge marks third-highest monthly closure counts since the pandemic started. Openings also fell short of offsetting losses, leaving just 936,200 active businesses. Over two years of growth were wiped out.
– Statistics Canada: GDP in Q1 is on track for a 1.7% annualized increase, with economy expanding by 0.2% in February and preliminary estimate suggesting it was flat in March. February marked the fourth consecutive monthly increase. Follows a 0.6% annualized contraction in Q4 2025.
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.
