Aug 27th, 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:
– Canadian retail sales extended their winning streak in June, rising 0.6% to $74.3 billion as consumer spending held up across most of the economy. However, a preliminary estimate from Statistics Canada pointing to a 0.8% decline in July.
– Rentals.ca’s Spring 2026 Renter Preference Survey: Among 1,194 active renters across Canada, found that 28.5% of respondents had turned to AI tools such as ChatGPT or Google Gemini at some point during their apartment search. Of those 340 users, 72.6% found experience helpful.
– Wahi examined GTA neighbourhoods with five or more transactions last month. Found Alderwood in southwest Etobicoke was the region’s fastest-selling market in July at 10 days. Chaplin Estates in Old Toronto led the slowest tier, with homes averaging 77 days on the market.
– Canada Mortgage and Housing Corporation Mortgage Consumer Survey found that 35% of Canadians who renewed their mortgage in the past 18 months reported increased financial pressure from interest-rate changes, with average monthly payments rising by approximately $375.
– CREA: Home sales up in July 0.5% – fourth consecutive monthly gain. 43,578 homes changed hands. Down 5.3% from 2025. National average sale price came in at $674,819, up 0.2% yearly. New listings declined 1.6% monthly – third straight drop. National inventory sat at 4.7 months.
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.
