Oct 1st, 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:
– Toronto and Vancouver housing markets have sunk to the bottom of UBS’s 2026 global real estate bubble rankings. Home prices in both fell by around 10% over the past year, the steepest declines among the 23 cities the Swiss bank tracks. Both in the “moderate” bubble-risk band now.
– 2026 Canadian Private Mortgage Lending Report: Just 6% of Canadians have used a private mortgage lender, but more than half of those borrowers (56%) say the experience improved their long-term financial standing. Only 11% reported a negative outcome.
– Meridian Housing Attainability Report 2026: 77% of Canadians now identify housing attainability as a critical issue for the country’s future. 62% say they would consider modular, prefabricated, or tiny homes, and half view those formats as a viable route to homeownership.
– Second wave of amendments to Ontario’s Residential Tenancies Act took effect on September 21. N4 notice repayment window is cut from 14 days to 7. Persistent late payment – now defined. N12 for personal use is no longer required to pay the tenant compensation with proper notice.
– Teranet-National Bank Composite HPI: Fell 0.2% from July to August. Eighth monthly decline in nine months and reversal of slight 0.1% gain recorded previous month. Weakest level in 3+ years. Prices down 4.2% from most recent peak in November and to lowest level since April 2023.
– SingleKey: Nationally, average rents declined 2.1% yearly to $2,051 in Q2, with renters allocating 28.1% of household income to housing. Canada’s two most expensive markets recorded sharpest declines. Vancouver rents fell 6% to avg of $2,833. Toronto rents dropped 5% to $2,623.
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.
