Canada's housing market is quietly in the middle of a 5-year reset.
Unoccupied units are ballooning, and they're secretly putting a floor under home prices.
A record 180,000 new rental units (+7% supply) are coming—could push vacancy to 5%.
Interest rate cuts are over for 2026. This is as affordable as it’s gonna get.
The City of Surrey has reduced residential building permit timelines by 75%, from 16 weeks to 4, enabling faster project starts. Builders now receive security deposits back in six weeks instead of six months, accelerating project progress. Minor tenant improvement permits are reviewed within one day. These improvements support rapid housing growth, with over 4,280 new dwellings and $2 billion in construction value recently achieved.
The City of Surrey has reduced residential building permit timelines by 75%, from 16 weeks to four, accelerating housing delivery. Builders now receive security deposits back in six weeks instead of six months, aiding project progress amid rising costs. Minor tenant improvement permits are reviewed within one day. The Development Approvals Process Improvements Task Force has been made permanent to further streamline approvals.
Some banks forecast rates near 2%, while others expect higher, uncertain borrowing costs.
Lower rates help push home resales up ~7.9% in 2026.
Average home prices forecast to rise modestly (+1–3.2%) with 2%ish rates.
2%‑level rates reduce urgency for sellers, fostering a more balanced market.
Start homebuying by securing an affordable mortgage and maintaining a healthy bank account to show financial stability. Have legal help ready for contracts and negotiations. Avoid viewing homes before financial readiness to prevent unrealistic expectations. Understand the importance of inspections and appraisals, prioritize key home features, and hire an experienced real estate agent for guidance. Preparation and patience are crucial for successful homeownership.
Most major banks expect rates to stay near 2.25% all year.
Some banks forecast Canada’s policy rate could rise to 2.75% by late 2026.
If rates unexpectedly climb, mortgage renewals could sharply increase monthly payments.
By end of 2026, ~60% of mortgages will be up for renewal.
Stronger inflation or global pressures could drive unexpected rate hikes.
To pay off a mortgage faster, consider accelerated payment schedules like accelerated biweekly to make extra payments without feeling the impact. Make lump sum payments with bonuses or tax refunds to reduce principal and interest. Shorten the amortization period to 15 or 20 years if affordable. Increase regular payments annually by 10-20%. Avoid costly penalties by choosing mortgages with lower break fees. Shop for lower interest rates to save money. Use Home Equity Lines of Credit cautiously to avoid delaying mortgage freedom.
Breaking a mortgage means paying it off early, changing terms, or ending the contract, often incurring penalties. Open mortgages have no fees, but closed fixed-rate mortgages require paying three months' interest or the interest rate differential, whichever is higher. Variable-rate mortgages usually incur a three-month interest penalty. Additional fees may apply. Strategies to reduce penalties include making maximum prepayments, porting the mortgage, blending and extending rates, or having the buyer assume the mortgage. Careful calculation is essential before deciding.
Mortgage rates ended 2025 near annual lows, with strategies available to secure rates below the national average in 2026. Key tips include improving credit scores, lowering debt-to-income ratios, making larger down payments, buying discount points, negotiating seller or builder rate buydowns, considering temporary buydowns, shopping for adjustable-rate mortgages, and opting for shorter loan terms or assumable mortgages. Refinancing depends on future rate drops and personal goals.
Mortgage rates in 2026 are lower than early 2025, with strategies to secure rates below the national average. Key tips include improving credit scores, maintaining a debt-to-income ratio below 25%, making larger down payments, and considering buying discount points to lower rates. Interest rate buydowns and adjustable-rate mortgages (ARMs) can offer short-term savings. Shorter-term loans typically have lower rates but higher payments. Assumable loans are rare but possible with certain government-backed mortgages. Refinancing depends on rate drops and long-term goals.