Canada's inflation rose to 3% due to higher oil prices, but the Bank of Canada is expected to hold interest rates steady next month. Variable mortgage rates likely remain stable, while fixed rates face uncertainty. Home sales and prices are rising, signaling a positive housing market outlook. A potential US-Canada trade deal and reduced tariff threats could boost market confidence and encourage more homebuyers, especially first-timers.
A Canadian bank’s mortgage portfolio reached $28.7B by Q2’s end, residential lending led gains, with balances ↑~12% yearly, ↑~4% quarterly, and ↑~6% since 2025 ended.
Including other client loans, the total net lending portfolio reached $31.75B, ↑~13% yearly, while avg. loans and mortgages also reached $31.1B in Q2.
Credit quality stayed stable: non-performing residential mortgages totaled $55M at Late-Q2’s end, still <0.2% of the residential portfolio measured at amortized cost.
Higher-risk Stage 2 residential mortgages eased to $1.27B from $1.38B, while the parent company said credit-loss provisioning stayed largely steady in Q2 overall.
The parent company posted $2.11B net income and $1.92B core earnings, but its Canada segment’s net income ↓~22% on claims and expenses.
A mortgage lets buyers borrow for a home while the property secures the loan, making ownership possible without paying the full price upfront.
Monthly payments usually include principal, interest, taxes and insurance, and each principal payment lowers what you owe while building equity over time.
Loan term, down payment, interest rate, escrow and amortization shape total cost, and many buyers choose fixed or adjustable structures based on flexibility.
Fixed loans keep the same rate, while adjustable loans change after an initial period, and extra principal payments can shorten payoff and reduce interest.
Credit, down payment and loan term affect pricing, so starting early helps buyers prepare, and calling the servicer quickly can open more solutions.
Over the past 10 quarters, we've seen Canada grapple with ongoing affordability challenges in the housing market. As a mortgage broker licensed in both BC and Alberta, I've noticed that conversations with clients are more nuanced than ever—what's happening in Vancouver or Toronto can look very different from the realities buyers and sellers are facing in Calgary or Edmonton. With economists predicting mortgage rates will hold steady or possibly rise over the coming year, attention is shifting toward the impact of home prices and income growth on affordability. Slower population growth may help ease housing demand and stabilize prices, while a gradually improving labour market is expected to support household incomes. Still, real affordability gains will likely depend on whether home prices moderate consistently. My focus remains on finding lending solutions tailored to your unique circumstances, whether you’re considering a first mortgage, refinancing, or exploring options like HELOCs or private lending. Every market—and every client—requires a customized approach.
As a licensed Mortgage Broker serving both BC and Alberta, I keep a close eye on lender offerings—here’s a quick update on RBC’s current mortgage rates. Their prime rate is sitting at 4.45%, which directly impacts variable-rate mortgages, lines of credit, and credit cards. While fixed mortgage rates remain steady, variable rates can shift, but they offer flexibility if you want to switch—often without penalties. For those aiming for the most competitive rates, a strong credit profile, larger down payment, and low debt load are essential. My focus has always been on finding the right lending solution that matches your individual circumstances, whether you’re considering a first mortgage, refinance, or even commercial lending. The landscape is always changing, but with the right strategy, your financing can keep pace.
