Ontario mortgage brokers concerned by Bank of Canada rate hike

The following is a news release from the Canadian Mortgage Brokers Association of Ontario (CMBA Ontario). For our news coverage of the decision, see Bank of Canada hikes key rate to 2.5%, first rise since 2023.

Ontario Mortgage Brokers Concerned by Bank of Canada’s Raise of Policy Rate

WOODBRIDGE, Ont., Oct. 28, 2026: The Canadian Mortgage Brokers Association of Ontario (CMBA Ontario) is disappointed by today’s decision by the Bank of Canada to raise its policy interest rate to 2.5%. Although a precautionary approach is understandable from the Bank of Canada given the stalling of trade talks, global instability and growing fears of inflation, CMBA Ontario worries that an overabundance of caution will have severe negative effects on consumer and investor confidence in the housing market.

“There are other risks with this strategy,” said Jessica Rickerby, President of CMBA Ontario. “While inflation is a key concern of Ontarians, so is housing affordability. The difference is that affordability is a pressing issue right now, whereas inflation is, at present, only slightly above the Bank of Canada’s target rate.”

The sale of new homes collapsed across Ontario in 2025. In the Greater Toronto Area, typically the most active part of the market, only about 5,300 new homes were sold: a record low and an 81 per cent fall from normal levels. As geopolitical and economic turmoil looks to continue and perhaps even worsen into 2027, so will unaffordability for buyers and hesitancy for investors. While there are some signs of revival thanks to new policy initiatives from the federal and provincial governments, more action is needed to help revive the sector, especially given the ongoing breakdown in trade talks with the United States. Without deliberate action, the dream of homeownership will remain out of reach for many Ontarians.

A recent study from Abacus Data says that despite the pessimism surrounding the housing market, 70% of Canadians still want to own a home someday. A 2025 study from Royal LePage found that over half of Ontario renters wish to buy a home in the next few years. Without a deliberate, targeted strategy to revive the pace of new builds, the cost of buying homes is going to leave these people’s dreams unrealized. And if housing is not a welcoming sector for investment, Canada’s economy will continue to lag.

“The problems facing Ontario’s housing sector aren’t contained within it,” noted Rickerby. “This crisis is something that is affecting the whole country. Without confidence in the housing sector, not only does it lock Ontarians out, but it also limits new investment, which has further effects on employment, government revenue and activity in other parts of the economy. Given the ongoing trade uncertainty with the United States, we can’t afford to further restrict one of the most important industries in the province and country. We hope that the Bank of Canada is not taking too narrow of a perspective with this rate hike.”

As global markets continue to shift, CMBA Ontario remains committed to maintaining a vision of stable and affordable homeownership here in Ontario, for all Ontarians. Regardless of what is happening in Canada or around the world, we will continue to support aspiring Ontario homeowners and work to make their dreams into reality.

About CMBA Ontario: CMBA Ontario provides mortgage broker professionals with a forum to work co-operatively, better share resources, branding initiatives, programs and information, and coordinate engagement of members to identify trends and develop solutions to common industry and regulatory issues. CMBA Ontario represents members to the federal and provincial governments and their agencies, and provides technological infrastructure, advertising material and brand awareness to support provincial associations and their members. We are committed to working with governments and regulators to support a vibrant, stable and affordable housing sector for all Ontarians.

Media contact: Jalen Rosario, 647-292-3053, [email protected]

Related: BoC hike adds about $68 a month to a $500K variable mortgage

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