Tijana Martin/The Globe and Mail
Mortgage rates are approaching the lowest point they’re expected to hit in the foreseeable future, but will that have any affect on reviving the housing market this year? The answer heavily depends on which city you’re in.
That’s according to an analysis this week from Desjardins, which discusses how Canada is becoming a tale of two housing markets.
On one hand, cheap markets such as Quebec City and Regina are seeing massive increases in prices, according to data from digital real estate platform Wahi. Quebec City consistently posted year-over-year growth exceeding 10 per cent for every single month of 2025.
But expensive markets like Toronto and Vancouver are still experiencing price declines and low sales volumes.
The Desjardins report, written by senior economists Kari Norman and Maëlle Boulais‑Préseault, suggests that the growth in cheaper markets is proof that affordability is the major factor that is preventing the housing market from picking up steam.
That’s why the economists’ overall outlook for 2026 is weak. Desjardins is forecasting that growth across Canada’s housing market will only tick up modestly as it enters a “fragile recovery phase.” Additionally, Desjardins says it’s more likely that the market will underperform their forecast, rather than outperform it.
What do you want to know about mortgages?
Do you have a mortgage question for our expert? Is a variable or fixed rate the best option? Does it make financial sense to refinance? Is it better to consult your bank or go to a mortgage broker?
Submit your questions below and Ratehub's Penelope Graham could answer it in an upcoming column.
Mortgage rates are sourced by Ratehub.ca. For a comprehensive list of today’s mortgage rates for each term/type, visit ratehub.ca/best-mortgage-rates.
Ratehub.ca is a mortgage-rate comparison marketplace and mortgage brokerage. It helps millions of Canadians compare and obtain the best mortgage rates, credit cards, insurance, deposits and loan products.
Rates shown are the lowest available for each term/type and category (insured versus uninsured) as of market close on XX.
