Woodbridge, ON (January 28, 2026) – The Canadian Mortgage Brokers Association of Ontario (CMBA Ontario) is disappointed by today’s decision by the Bank of Canada (BOC) to hold its policy interest rate at 2.25%. CMBA Ontario encourages a more direct and aggressive approach in order to curb the worsening housing crisis and rebuild consumer confidence in the market.
The new housing initiatives announced by the federal government in the fall’s federal budget presented the BOC with an opportunity to cut interest rates. Holding the interest rate during a growing crisis inhibits the construction of new homes, undermines consumer confidence for current homeowners, and further exacerbates entry barriers into the market. Without a drastic turn, a drop in new housing starts could cost tens of thousands of construction jobs in the province.
“We were looking for the Bank of Canada to take a more active role on this,” said Michelle Campbell, President of CMBA Ontario. “A rate cut would have been a clear indicator for all those concerned that the future of the housing market in Canada will be healthy, regardless of what is happening elsewhere.”
Just 240 new home sales were recorded across the GTA in December 2025, marking a 78.2% decrease from the previous 10-year average for the month. December capped off the worst year for new home sales in the GTA in 45 years, 81% below the 10-year average. Housing prices remain elevated despite the BOC’s recent string of rate cuts, and the main drivers of buyer hesitancy are expected to continue well into 2026.
At current interest rates, the increased costs of taking on new debt are a disincentive to both suppliers and buyers of housing. This has a double negative effect: it reduces the amount of new supply while also keeps the cost of paying mortgages high for current homeowners. The economic consequences are felt across the province, as the cost of taking on new debt and servicing old debt rolls onto other Ontarians as businesses are less likely to hire new employees or expand operations, and individuals and families spend less. CMBA Ontario would have liked to see a rate cut as a means to revive economic activity, beyond just the positive benefits for the housing market.
“High interest rates affect all Ontarians, regardless of whether you have a mortgage or not,” noted Campbell. “This isn’t something limited to housing, it’s big-picture issue that affects the whole country. A rate cut would not only have had a positive impact in terms of encouraging new supply and solidifying consumer confidence in the housing market, but would also have had a positive ripple effect, sparking economic growth Canada-wide.”
As Canada and Ontario face new global economic and political uncertainties, CMBA Ontario remains committed to maintaining a vision of stable and affordable homeownership for all Ontarians. We will continue to support aspiring homeowners in Ontario and work to make their dreams into reality.
About CMBA Ontario: CMBA Ontario provides mortgage broker professionals with a forum to work cooperatively, be er 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.
