Sep 25th, 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:
– Wahi and Real Property Solutions said the value of condos in the Greater Toronto Area with a size of under 500 sq. ft. plunged by 12.2% between 2020 and 2025, compared to larger (500-700-sq.-ft.) units which saw a 6.2% decline.
– Toronto and Vancouver placed 20th and 24th out of 1,000 cities worldwide in the 2026 Oxford Economics Global Cities Index, holding their positions inside the global top 25 even as both cities carry some of the steepest housing costs in the world relative to income.
– CREA: National Composite MLS Home Price Index was unchanged from July to August, extending a run of flat monthly readings that has persisted since spring. However, HPI remained 3% below August 2025 levels. National average sale price reached $668,219 in August, up 0.6% yearly.
– CREA: Canadian home sales fell in August for first time since spring. Declined 0.7% on seasonally adjusted monthly basis, while actual unadjusted activity came in 6.9% below the same month last year. New listings rose 3.3% monthly, reversing three consecutive monthly declines.
– Statistics Canada: Consumer Price Index held at 3% year over year in August for a second consecutive month. Reading matched July’s print and met economists’ forecasts. On a monthly basis, prices slipped 0.1%, though on a seasonally adjusted basis they edged up 0.2%.
– Statistics Canada: Households ended Q2 with their debt load at its lowest level relative to income in nearly two years. Ratio of household credit market debt to disposable income fell to 176.4%, down from 178.6% in Q1, the largest quarterly decline since Q3 2024.
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.
