July 22nd, 2026 Mortgage Industry Update
The Bank of Canada announced on July 15th that its overnight rate will remain at 2.25%. The economy is showing signs of improvement. Growth is picking up and inflation is projected to ease gradually. There are still important risks and uncertainties related to the war and US trade policy. The prime rate remains 4.45%.
Additionally this week:
– Royal LePage: Expects aggregate price of a home in Canada to increase 2% in Q4 to $823,344 compared annually — up from its previous forecast of 1%. Prices in Vancouver and Toronto regions, are expected to fall 3.5 per cent and two per cent, respectively, compared with late 2025.
– Royal LePage: National aggregate home price fell 1.4% year over year to $814,900 in Q2 2026. 0.2% quarterly gain and improving activity levels. GTA and Greater Vancouver bore steepest annual declines, falling 4.6% and 4.5% year over year to $1,101,700 and $1,164,100 respectively.
– REMAX Canada Hot Pocket Communities Report: 61% of 83 markets it tracked across GTA, Greater Vancouver and Fraser Valley posted detached sales gains between January 1 – June 30 compared with same period a year earlier. Only 6% of those markets saw values rise over same window.
– The Canadian real estate correction is now the largest in history, according to BIS data. Data from the organization known as the “central bank for central banks” shows Canadian home prices have dropped 20.1% from Q1 2022 to Q1 2026.
– Toronto fell from the fastest-growing metropolitan area in Canada and the United States in 2024 to 412th out of 435 metros in 2025, according to a new analysis from Toronto Metropolitan University’s Centre for Urban Research and Land Development.
– Colliers Canada’s second-quarter market outlook says the national office vacancy rate fell for the fourth consecutive quarter to 13.4%, while industrial vacancies tightened for the second straight quarter to 3.3%.
– Statistics Canada: Employment rose 18,200 in June and unemployment rate fell to 6.5%. Gain was driven by the service sectors and in part-time work. Follows an 87,800 increase in May. Economists were expecting a modest 10,000 employment gain, and for rate to hold steady at 6.6%.
– Wahi: In June, just 6% of the 306 GTA neighbourhoods in which at least five resale homes changed hands were in overbidding territory last month, down from 7% in May. 93% were in underbidding territory this June, and a handful of others (1%) were selling at asking.
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.
