Canadian housing market 'on its knees' as odds of Bank of Canada rate hike rise
CBC reported that the Canadian housing market is 'on its knees' as the odds of a Bank of Canada rate hike rise. The broadcaster noted that the central bank has not raised interest rates since July 2023. CBC discussed an eighth-consecutive hold alongside the growing chance of an increase. The National Post, citing Benchmark Canada, reported that Canadians are quickly falling behind on their mortgages. The National Post wrote that the share of homeowners who fell seriously behind on payments has doubled from its 2022 low. Neither outlet gave a date for the next decision.
Higher rates raise borrowing costs when mortgages renew, and a rising share of late payments suggests households are already strained. A rate hike would add to that pressure.
Homeowners with mortgages up for renewal may face higher payments if rates rise. Buyers and renters may see the market's weakness reflected in prices.
The 'on its knees' view in CBC's coverage is that housing is too fragile to absorb a hike.
The other view is that inflation concerns leave the Bank of Canada open to raising rates despite the housing strain, as the rising odds reported by CBC indicate.
Confirmed: no increase since July 2023 and a doubling of seriously late borrowers since the 2022 low. Not confirmed: whether the bank will raise rates. Watch the bank's next announcement and its language on inflation.
DailyDrop Canada edition No. 17 · Morning · WED., OCT. 21, 2026