Weekly Mortgage & Market Update
Canada’s Job Market Beat Expectations. Here’s What Borrowers Need to Know.
A big week for Canadian economic data brought a much stronger employment report, a lower unemployment rate, and renewed pressure on bond yields. At the same time, Fraser Valley home prices remain below last year’s levels, giving prepared buyers more negotiating room. Here is what moved this week and what it could mean for your mortgage.
Canada Added About 75,000 Jobs in July
Canada’s July employment report was substantially stronger than economists expected. Employment increased by about 75,000, with gains divided between full time and part time work. The unemployment rate declined to 6.4%, its lowest level in two years.
A stronger labour market reduces the immediate need for the Bank of Canada to stimulate the economy. It does not guarantee what the Bank will do on September 2, but it makes another near term rate cut less certain. Inflation, energy prices, trade conditions, and the next round of economic data will still influence the decision.
“The stronger employment report gives the Bank of Canada more room to wait. Variable rate borrowers should plan for more than one possible outcome in September.”
Bond Yields Moved Higher Again
The five year Government of Canada bond yield traded near 3.26% on Friday morning. That was approximately three basis points above Thursday’s close and about nine basis points higher than Wednesday.
Five year fixed mortgage pricing is influenced by the five year Government of Canada bond yield. When the yield rises quickly, lenders may adjust their fixed rates or withdraw promotional pricing. If you are actively shopping for a home, arranging a rate hold can provide protection while you compare properties and lenders. Intraday bond yields can change throughout the trading session.
Fraser Valley Buyers Have More Negotiating Room
The Fraser Valley Real Estate Board reported 1,089 sales in July, while active inventory remained above 10,000 listings. The composite benchmark price was approximately 7% lower than it was one year earlier.
Lower prices and higher borrowing costs are pulling buyers in opposite directions. A 7% reduction on a $900,000 home represents approximately $63,000 in purchase price. However, an increase in mortgage rates can add back some of those savings over time. A prepared buyer can use a rate hold for protection and still negotiate carefully on the purchase price.
Energy Production Is Strong, but Expansion Decisions Remain Cautious
Canadian Natural Resources reported record second quarter production and increased its 2026 production forecast. The company also indicated that several large expansion projects remain paused while it waits for greater clarity on government policy commitments.
This illustrates a wider theme in the Canadian economy. Businesses can maintain strong current production while remaining cautious about major long term investments. That uncertainty is one of several factors the Bank of Canada will consider alongside employment and inflation data.
Airbnb Says Artificial Intelligence Is Reducing Support Costs
Airbnb reported that improvements to its artificial intelligence assistant reduced customer support costs per booking by approximately 16% compared with one year earlier. The company also raised its revenue forecast following stronger quarterly results.
The mortgage industry is seeing a similar opportunity. Technology can help with routine questions, document reminders, and basic follow up. The value of professional advice remains in understanding a client’s goals, structuring the application, comparing lender options, and solving complications that require judgment and experience.
What This Means for You
If You Are Buying
Fraser Valley prices are lower than they were one year ago and inventory remains high. At the same time, rising bond yields are putting pressure on fixed mortgage rates. Arrange a rate hold, understand your budget, and use the available inventory to negotiate from a stronger position.
If You Are Renewing
The stronger employment report makes a September rate cut less certain. If your renewal is within the next six months, start reviewing your options now so you are not forced to accept your current lender’s offer without comparing alternatives.
If You Have a Variable Rate
The July employment report gives the Bank of Canada more room to hold its policy rate. A September cut is still possible, but it is not guaranteed. If payment uncertainty is uncomfortable, we can compare the cost of staying variable with the available fixed options.
This Week’s Featured Listing
1602, 575 Delestre Avenue, Coquitlam, BC
1 Bathroom
686 Square Feet
Sub Penthouse
No One Above
In Unit Laundry
1 Parking Space
Storage Locker
This two bedroom home is on the sub penthouse level of Cora Towers in West Coquitlam. The concrete building and absence of a neighbour directly above may appeal to buyers looking for additional privacy. The home includes a balcony, in unit laundry, one covered parking space, and a storage locker.
At $529,000, the property provides a comparatively accessible entry point into Metro Vancouver ownership. Buyers should review the strata documents, current fees, insurance, bylaws, and any planned building expenses with their real estate and legal professionals before making a decision.
| Purchase Price | $529,000 |
| Illustrative Minimum Down Payment | $27,900 |
| Estimated Mortgage Insurance Premium | $21,046 |
| Estimated Total Mortgage | $522,146 |
| Illustrative Rate and Term | 4.04% for 3 Years Fixed |
| Illustrative Amortization | 30 Years |
| Estimated Payment Every Two Weeks | $1,150.38 |
| Current Strata Fee | $272.21 Per Month |
This example assumes eligibility for a 30 year insured mortgage as a qualifying first time buyer. The estimated insurance premium includes the additional premium for an amortization longer than 25 years. Rates, strata costs, insurance premiums, qualification, and lender requirements vary. Closing costs are not included. The property details and strata fee must be independently verified. Contact Rob for calculations based on your circumstances.
Steve Birkic
Oakwyn Realty Ltd.
778 882 5700 | steve@stevebirkic.com
What’s On This Weekend: August 8 and 9
There is plenty happening across Metro Vancouver and the Fraser Valley this weekend.
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