Oct 15th, 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: Just 6% of the 230 GTA neighbourhoods with at least five resale transactions in September were in overbidding territory. That’s up from 2% in August, but still near multi-year lows. Meanwhile, 93% of tracked neighbourhoods saw homes change hands below their list price.
– Habitat for Humanity International: 56% of non-homeowners in Canada say they do not expect to ever own a home. That’s the highest rate of homeownership pessimism recorded across 22 surveyed countries. Compares with a global average of 23%. Exceeds the United States (42%).
– CBRE: Canada’s office market logged a fifth straight quarter of positive demand in Q3 2026. The recovery, however, is concentrating in the country’s best buildings and leaving older stock behind. Net absorption totalled 2.0 million square feet nationally quarter over quarter.
– Toronto Region Board of Trade: Ontario’s goal of 1.5 million new homes by 2031 can no longer be met on its current timeline. The board urged the province to standardize municipal zoning and modernize the Ontario Building Code before buyer demand recovers.
– The Bank of Canada has started building its economic forecasts on a new model that gives mortgage renewals and housing supply a much bigger role in how the central bank reads inflation. The change brings Canada’s renewal wave closer to the centre of rate-setting.
– Royal LePage: 9/10 newcomers to Canada say homeownership is important to their sense of being established in the country, yet fewer than 1/3 currently own their primary residence. Among non-owning newcomers who intend to buy, 76% say purchasing a home remains a priority.
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.
