June 4th, 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:
– CMHC survey from those who completed mortgage transaction in 18 months prior to Feb 2026, found the proportion of respondents concerned about defaulting on their mortgage fell to 39% from 53% in 2025. 81% continue to view homeownership as a sound long-term financial investment.
– Royal LePage survey: 82% would forgo or significantly cut back a wedding to put money toward a down payment. Nearly 8/10 said they would consider asking for down payment contributions in lieu of traditional gifts. 83% said a home is most important purchase of a person’s lifetime.
– Statistics Canada: Value of residential building permits in Canada fell 3.3% in March to $8.0 billion. Decline was almost entirely driven by multi-family segment, which dropped 4.9% monthly to $5.3 billion. Single-family permit values were essentially unchanged at $2.7 billion.
– Statistics Canada: National annual inflation rate surged to 2.8% in April, the fastest pace of price growth since May 2024. Has moved up due to higher oil prices linked to the war in the Middle East. Gasoline prices rose 28.6% year-over-year last month.
– REMAX Canada: 45% of prospective Canadian buyers intend to purchase a recreational property as an entry point into the broader housing market. 60% of existing recreational property owners say the asset forms part of their long-term wealth strategy.
– The province saw 5,109 consumer insolvencies in March, up 10.2% from last year and is now home to 38% of all filings. Back in 2019, the province only represented 31% of filings, meaning it grew 21% faster than average.
– Zumper: Based on an analysis of hundreds of thousands of rent listings across 23 largest cities in the country, one-bedrooms rose 0.2% monthly in April to $1,782, while two-bedrooms gained 0.3% to $2,210. On annual basis, one-bedrooms are down 2.9% and two-bedrooms are down 1.7%.
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.
