Sep 17th, 2026 Mortgage Industry Update
The Bank of Canada announced on September 2nd that its overnight rate will remain at 2.25%. Uncertainty remains high and new US tariffs and threats of further action pose continued risks. The war in the Middle East remains a strong concern as well. The prime rate remains 4.45%.
Additionally this week:
– Urbanation: Canadian asking rents fell for 23rd consecutive month in August, with national average dropping to $2,035. Down 4.8% yearly, steepest annual decline since March. Reverses momentum of four consecutive monthly gains, leaves asking prices at their lowest point since 2022.
– CMHC: Canada needs between 417K-469K housing starts annually to restore affordability to pre-pandemic levels by 2036, roughly double current construction pace. National housing supply gap stands at between 187K-238K homes/year and is broadly unchanged from CMHC’s 2025 estimate.
– RBC: Canadian household net worth is on track to rise in Q2, lifted by strong equity market performance and improving disposable income. Follows Q1 data confirming that household net worth rose 1.3% to reach just over $18.6 trillion, a tenth consecutive quarterly gain.
– Statistics Canada: Labour market reversed course in August, shedding 42,000 jobs. Unemployment rate held at 6.4% for a second consecutive month. Full-time positions fell 35,900 while part-time employment declined by a further 5,800, reversing the momentum built during July.
– Deloitte Canada: A formal US withdrawal from CUSMA would strip $402 billion from Canada’s real gross domestic product over the next decade and eliminate approximately 163,000 jobs annually on average. Trade diversification alone would only partially offset those losses.
– TRREB: Number of condos sold last month fell by 2.6% across GTA, tumbling to 1,330 as both the city centre and wider 905 region posted declines. Prices slipped by 3.6%, spurred by big drop (7.6%) in 905. Average price now sits at $617,593, nearly 20% lower than its Feb 2022 level.
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.
