WOODBRIDGE, ON (September 2, 2026) – The Canadian Mortgage Brokers Association of Ontario (CMBA Ontario) supports the decision by the Bank of Canada to hold its policy interest rate at 2.25%. Given the current turmoil over trade talks with the United States, it is important that our institutions not overreact to news headlines or empty provocations. It is a welcoming sign for Canada’s housing market that the Bank of Canada maintains its confidence in the continuing health and stability of the Canadian economy.
Keeping interest rates steady is important to keep up the pace of new home construction in Ontario. Thanks to recent policy initiatives incentivizing new home construction from all levels of government, CMBA Ontario is optimistic that Ontarians’ dreams of homeownership are closer to becoming reality.
“It’s the kind of signal we were all looking for,” said Michelle Campbell, President of CMBA Ontario. “The housing market needs steady, confident leadership. People are looking to our institutions to show that this is a good time to invest, and holding rates is a strong indicator of that. Safety and security are the key priorities for investors right now. Given all the turmoil that is happening with the trade talks and international events, this rate hold was a prudent and necessary step.”
American tariffs and Canadian counter-tariffs may affect many inputs necessary for constructing new homes. This threatens the fragile recovery in the pace of the construction of new homes; 2025 saw a dramatic decrease in both the sale of new homes and the pace of new home starts in Ontario, while bouncing back so far in 2026. Another decrease would have impacts beyond just those looking to buy a home: jobs in the construction industry and supporting industries may be at risk given a prolonged slowdown. This further complicates Ontario’s cloudy economic future.
“We can’t risk the recent progress that has been made,” Campbell said. “We need committed action to revive new construction in housing; the impact of the sector goes well beyond just the housing market. All levels of government have a responsibility here to keep both economic activity and housing affordability strong. We can’t neglect one of our most important industries at a time like this.”
Given the ongoing uncertainty of trade talks with the United States, a strong, stable, and affordable housing market is something all Ontarians should be able to rely on. While trade wars, energy shortages, and foreign conflicts drag on, CMBA Ontario will remain hard at work to ensure the dream of home ownership remains affordable and attainable.
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