Weekly Mortgage & Market Update
Canada Lost 42,000 Jobs. Why Have Fixed Rates Not Dropped?
Canada lost 42,000 jobs in August when economists had expected employment to increase. The report adds to evidence that the economy is losing momentum, but fixed mortgage rates have not immediately followed. This update looks at employment, bond yields, Interior British Columbia housing activity, international trade, and what the latest numbers may mean for borrowers.
Canada Lost 42,000 Jobs in August
Statistics Canada reported that employment declined by 42,000 in August. The unemployment rate remained at 6.4%, while the employment rate fell to 60.8%. Average hourly wages were 2.0% higher than one year earlier at $37.02.
The largest employment declines were in business, building and other support services, public administration, natural resources, and utilities. Manufacturing added jobs during the month. These details matter because the headline number does not affect every worker or industry in the same way.
Weak employment data can support lower interest rates over time, but one report does not guarantee an immediate change in fixed mortgage pricing.
Lenders commonly verify employment before closing. A material change to a borrower’s job, hours, or income can affect qualification, even after an approval has been issued. Anyone expecting an employment change should speak with their mortgage professional before making firm commitments.
Why Fixed Mortgage Rates Have Not Dropped
The five year Government of Canada bond yield was near 3.39% Friday when this update was prepared. Fixed mortgage pricing is influenced by bond market funding costs, lender competition, risk, and operating margins. Lenders normally look for a sustained movement in yields before making meaningful pricing changes.
Ratehub listed a lowest advertised high ratio five year fixed rate of 4.09% and a lowest advertised high ratio variable rate of 3.30% on September 4. That is a difference of 0.79 percentage points. These are advertised market rates, not guaranteed offers. Eligibility depends on the borrower, property, mortgage purpose, amortization, and lender guidelines.
Variable mortgage rates respond more directly when the Bank of Canada changes its overnight rate. Fixed rates respond to bond markets and can move before, after, or independently of a Bank of Canada decision. The right choice depends on payment stability, risk tolerance, penalties, prepayment privileges, and future plans.
Interior British Columbia Housing Activity Slowed
Interior REALTORS reported 1,141 residential sales in August, including 581 single family sales. Single family transactions declined 24.6% from July and 9.5% from one year earlier. The reported single family price was $781,200, while the average time to sell reached 73 days.
Longer selling times can give buyers more opportunity to compare properties, complete due diligence, and negotiate. Sellers may need to place greater emphasis on accurate pricing and presentation from the start.
Anyone buying one property while selling another should plan the timing carefully. Longer selling periods can create challenges with deposits, closing dates, bridge financing, and qualification. It is worth reviewing those details before writing an offer.
Canada’s Trade Surplus Narrowed
Canada’s merchandise trade surplus narrowed from $4.2 billion in June to $769 million in July. Total exports declined 2.3%, imports increased 2.2%, and exports to the United States fell 6.6%.
There was also an encouraging sign. Exports to countries other than the United States increased 7.4% to a record $25.6 billion. That diversification does not remove the risks facing trade exposed businesses, but it provides important balance to the headline decline.
Self employed borrowers and employees in industries affected by trade uncertainty should review their income documentation early. Lenders assess the durability and consistency of income, and the most suitable approach can vary considerably from one application to another.
What This Means for You
If You Are Buying
Consider securing a rate hold while you compare homes and financing options. A rate hold may protect you if pricing rises, while many lenders can still offer a lower rate if an eligible product improves before closing. Make sure your approval remains valid if your employment, down payment, debts, or property details change.
If You Are Renewing
Compare fixed and variable options using more than the opening rate. Review payment stability, penalties, portability, prepayment privileges, and how long you expect to keep the mortgage. The current rate difference is meaningful, but the lowest rate is not automatically the best strategy.
If You Are Self Employed or Work in a Trade Exposed Industry
Begin reviewing your qualification before you need financing. Current financial statements, tax documents, business bank statements, contracts, and a clear explanation of recent income can help a lender understand the complete picture.
Featured Listing
Unit 1901, 13380 108 Avenue, Surrey
1 Bathroom
485 Square Feet
Built in 2010
Strata Fee $381 Monthly
Parking and Storage
This City Point condominium is located near Gateway SkyTrain, Simon Fraser University Surrey, City Hall, shopping, and restaurants. The home includes stainless steel appliances, quartz counters, in suite laundry, one parking space, and storage. Building amenities include an exercise centre and recreation facilities.
The purchase price creates an interesting ownership example in a region where affordability remains a challenge. The figures below illustrate one possible insured financing structure. They are not an approval or a guaranteed offer.
| Purchase Price | $345,900 |
| Down Payment at 5% | $17,295 |
| Illustrative Insurance Premium | $13,801 |
| Illustrative Total Mortgage | $342,406 |
| Illustrative Rate and Term | 4.04% for 3 Years Fixed |
| Illustrative Amortization | 30 Years |
| Estimated Payment Every Two Weeks | $754.38 |
| Estimated Mortgage and Strata Monthly | $2,015 |
| Illustrative Stress Test Rate | 6.04% |
| Illustrative Qualification Income | $47,986 |
For more information, contact Mike Uppal PREC
Century 21 Coastal Realty Ltd.
778 772 2919 | mike.uppal@century21.ca
All financing figures are illustrative and subject to lender, borrower, property, occupancy, and mortgage insurer approval. The 30 year insured amortization shown is available only to an eligible first time homebuyer or an eligible purchaser of a new build. Other insured buyers may be limited to 25 years. The income estimate depends on property taxes, heating costs, condominium fees, other debts, credit, lender guidelines, and qualification rules. The estimated mortgage and strata amount excludes property taxes, insurance, utilities, repairs, maintenance, closing costs, and other ownership expenses. Rates can change without notice.
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