Good morning. While the suits at Bay Street had a sleepy Thursday with no major financial announcements, the housing market delivered some eye-opening numbers that should grab your attention over your morning coffee.
Bond Yields Cool Down, Mortgage Rates Hold Steady
Canadian 10-year government bond yields pulled back to 3.4% by Friday after spiking earlier this week due to geopolitical tensions over the Strait of Hormuz. Trading Economics reported that yields hit 3.46% on Thursday before retreating as oil prices cooled and stagflation fears receded.
This matters for anyone shopping for a mortgage because bond yields directly influence fixed mortgage rates. TD Bank's 5-year fixed rates remain parked at 4.94% for both insured and uninsured mortgages, with their variable rate holding at 4.29%. The Bank of Canada's overnight rate stayed put this week, keeping TD's prime rate steady at 4.45% since October 30, 2025.
Rental Market Shows Signs of Relief
Here's news that might actually help renters catch a break. Canada's national rental vacancy rate jumped to 5.1% in Q1 2026, up a hefty 110 basis points year-over-year, according to Yardi's Q2 Canadian National Multifamily Report released Tuesday.
The driving forces? New apartment supply and slower immigration are finally giving renters some leverage. National average rent growth slowed to just 2.7% - the lowest in four years. Halifax still leads the pack with 6% growth, while Calgary actually saw rents decline 2%.
New apartment completions rose 22.3% to 171,000 units in the 12 months to November 2025. Alberta led construction starts with 30% growth, while B.C. saw completions surge 43%. For those considering personal loans to cover moving costs or deposits, this supply increase could mean more negotiating power.
House Prices Continue Their Reality Check
The national housing correction continues with the RPS-Wahi House Price Index declining 3% year-over-year in March 2026. Wahi's latest data shows prices dropping in 6 of 13 major markets.
Hamilton took a particularly hard hit, with average sold prices plummeting 8.6% year-over-year to $721,075 in March 2026. That's now below March 2021 levels, effectively erasing pandemic gains. WOWA data shows the market remains balanced with 4 months of supply and 45 average days on market.
| Market | Price Change (YoY) | Average Price |
|---|---|---|
| Hamilton | -8.6% | $721,075 |
| Greater Vancouver | -4.5% | $1,174,500 |
| National Index | -3.0% | - |
Greater Vancouver's aggregate home price fell 4.5% year-over-year to $1,174,500 in Q1 2026, according to Royal LePage's Q1 report. Before you start shopping, run the numbers through our mortgage calculator to see what these price drops mean for your monthly payments.
Economic Growth Shows Modest Recovery
The Canadian Federation of Independent Business released their Q1 2026 Main Street Quarterly report on April 23, estimating Canadian GDP growth at 1.6% for both Q1 and Q2 2026. They're forecasting CPI inflation at 2.9% for Q2 - still above the Bank of Canada's 2% target but moving in the right direction.
Small business job vacancies held steady at 2.8%, representing 391,300 open positions. For business owners considering expansion financing, check our AI loan advisor to explore your options.
Markets Remain Flat
The S&P/TSX Composite Index closed down 0.12% Thursday, with major bank shares trading muted near the 34,000 level. Investing.com reported losses in healthcare, IT, and materials sectors drove the decline.
Frequently Asked Questions
How much did Canadian rental vacancy rates increase in Q1 2026?
Canada's rental vacancy rate rose to 5.1% in Q1 2026, up 110 basis points from the previous year, driven by increased apartment supply and slower immigration according to Yardi's report.
What happened to Hamilton house prices in March 2026?
Hamilton's average home price dropped 8.6% year-over-year to $721,075 in March 2026, falling below March 2021 levels and effectively erasing pandemic gains.
Where are Canadian 10-year bond yields currently trading?
Canadian 10-year government bond yields eased to 3.4% by Friday after hitting 3.46% on Thursday, as geopolitical tensions over the Strait of Hormuz receded and oil prices cooled.
Sources
- Canadian Government Bond Yield News — Trading Economics
- Canada's Rental Vacancy Rate Report — RENX
- RPS-Wahi House Price Index March 2026 — Wahi
- Hamilton Housing Market Report — WOWA
- CFIB Main Street Quarterly Q1 2026 — Newswire