After a four-month run of modestly positive progress on demand, supply, and prices, many of Canada’s housing markets took a step back in September.

Persistently high long-term bond yields are shaping up as the deciding variable for Canada’s commercial mortgage market, with a new report warning that capitalization rates may struggle to hold if borrowing costs stay elevated into 2027.

The average Canadian only expects to buy their first home at the age of 41, 12 years older than when current homeowners bought theirs.

The International Monetary Fund (IMF) warned on October 13 that a sharper rise in government bond yields ranks among the most plausible near-term threats to global financial stability, a risk Canadian mortgage borrowers are already absorbing at renewal.

Homebuyers were in a holding pattern in September, as uncertainty surrounding the economy, inflation and borrowing costs weighed on Greater Toronto Area (GTA) home sales.

Global banks are rethinking Canada's rate path as inflation climbs past the BoC's 2% target

Ontario and Alberta recorded the highest mortgage application fraud rates in Q2 as Equifax warned lenders to account for regional differences in financial stress.

A widening split in Canada's office market carries fresh risks for commercial lenders

Rising bond yields are pushing fixed rates higher, but experts are divided on whether Bank of Canada hikes will erode the savings offered by variable mortgages.

Toronto-Dominion Bank has downgraded its outlook for Canada’s housing market in 2026 and is calling for home sales to fall five per cent as higher bond yields take their toll.

Toronto and Vancouver housing markets have sunk to the bottom of UBS's 2026 global real estate bubble rankings. Inflation-adjusted home prices in both cities fell by around 10% over the past year, the steepest declines among the 23 cities the Swiss bank tracks.

The Bank of Canada is likely to raise interest rates at its next two meetings as the Middle East conflict creates the risk of broader price pressures, a senior macro strategist at Manulife said.

The Bank of Canada is navigating a difficult crossroads ahead of its October 28 rate decision, with Governor Tiff Macklem warning that higher borrowing costs remain a live possibility.

A second wave of amendments to Ontario's Residential Tenancies Act (RTA) took effect on September 21, cutting the repayment window for tenants in arrears in half and reshaping the terms that govern rental investments across the province.

'Speculation is gone, investors are absent, and prices are holding flat': BMO's Kavcic

Starts are down 4% year-to-date as CMHC warns of continued weakness ahead

Canadian home sales fell in August for the first time since spring, as rising inflation risks and the renewed prospect of a Bank of Canada rate hike threatened to cut short a tentative housing market recovery, the Canadian Real Estate Association (CREA) reported.

Major lenders have raised fixed rates, while some borrowers may face larger increases as discretionary discounts disappear.

Household debt burdens eased as income growth outpaced debt payments, but mortgage interest costs continued to climb.

The number of homes available for sale in August 2026 was down noticeably compared to last year in the Greater Toronto Area (GTA). Following this trend, home sales also edged lower, as the number of transactions was arguably limited by less choice in some neighbourhoods. Less choice and more competition between buyers could ultimately result in renewed price growth in the months ahead.