Aug 5th, 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:
– Canada’s economy expanded 0.3% in May, comfortably outpacing Statistics Canada’s advance estimate of 0.1% and extending a second consecutive month of growth that puts Q2 gross domestic product on course to significantly overshoot the Bank of Canada’s own projections.
– Redfin: 15.3% year-over-year decline in Canada-based searches for US homes in June. That’s nearly double the 10.1% drop recorded in May. Taken together with a 25.7% slide in June 2025, the cumulative pullback over two years now stands at roughly 37%.
– BIS: Canadian real estate is falling faster than anywhere else in the G7. Home prices dropped across all but two G7 countries in Q4 2025, the latest common quarter. Despite Canada’s sharp correction, it still lays claim to the title of the second-highest price growth since 2010.
– TransUnion Canada’s Q2 2026 Consumer Pulse Study found that 45% of Canadians surveyed are optimistic about their household finances over the next 12 months. 24% said their finances have performed better than expected so far this year, the highest share recorded in the past year.
– Avison Young 2026 Canadian Mid-Year Outlook, drawn from survey of more than 200 Avison Young professionals conducted in June 2026, found that 96% of respondents expect commercial real estate market activity to either increase (49%) or remain stable (47%) through remainder of year.
– New consumer research from Mortgage Professionals Canada found that 38% of recent homebuyers obtained their mortgage through a broker, up six percentage points from 2024. The share rose to 48% among recent first-time buyers, an increase of 10 percentage points.
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.
