On June 10, 2026, the Bank of Canada (BoC) announced that it would keep interest rates stable at 2.25%. Citing the volatile backdrop of the war in the Middle East, uncertainty over trade policy with the United States and rising inflation, the BoC maintained a stable interest rate for the fifth consecutive day. This decision resulted in two particularly different reactions from branches of the Canadian Mortgage Brokers Association (CMBA).
Representing the organization’s national branch, the CMBA in Ottawa recognized the potential benefits of interest rate stability while recalling the ongoing housing affordability issues across the country. In a press release on the day of the decision, CMBA President John Woods said: “A cautious approach, while reassuring, does not address the biggest expense for Canadians, housing costs.” Woods also warned of the longer-term impact of higher interest rates, saying “a prolonged period of high interest rates risks sidelining potential homebuyers, particularly first-time buyers who are already struggling to enter the market.”
In contrast, the Ontario Chapter of the CMBA offered a clear endorsement of the Bank of Canada’s decision. In their own press release they praised the stability that would be achieved by maintaining interest rates. While affordability was a clear concern, CMBA Ontario President Michelle Campbell highlighted the benefits of interest rate stability, noting that the unchanged interest rates were a signal “that the Canadian real estate market is a safe place to invest.” Compared to the national CMBA, a focus on restoring buyer and investor confidence was a common theme in the Ontario Chapter release, with the rate decision framed in this context.
Looking southeast across Etobicoke from the 401 to the distant skyline of Humber Bay Shores, image by UrbanToronto Forum contributor Steveve
However, despite their differing opinions on the Bank of Canada’s decision itself, both the national and Ontario divisions of the CMBA share the belief that further policy initiatives are needed to address issues in the housing market, with Campbell noting that “Ontarians are demanding much more action from all levels of government so that they can achieve the same levels of prosperity as previous generations.” This opinion was reflected in the publication of the national chapter, which highlighted the need for policies that respond to changing market conditions.
Why it matters:
The reason for these two different responses arises from the way in which the needs of the national CMBA and CMBA Ontario are in contrast to one another. While there is still some overlap between the two (e.g. agreement on the need for further policy interventions), the main difference between the two lies in the importance of providing what can be perceived as market stability. This value, in turn, is related to the fact that certain regional housing markets are more investor-driven than others – something that is particularly relevant to Ontario.
Investors played a major role in driving Ontario’s recent real estate boom (particularly in the Greater Toronto Area), and the slowdown in their home purchase rates has contributed to sluggish growth in recent years. Given the huge impact they have on the market, reassuring investors of the stability of the market and encouraging them to feel comfortable investing again would undoubtedly be a top priority in Ontario. Recognition of their importance is evident throughout CMBA Ontario’s statement, which repeatedly emphasizes the importance of boosting investor confidence and ensuring that Canada continues to be viewed as a safe haven for stable investment amid ongoing global uncertainty.
In contrast, the national CMBA’s statement makes virtually no reference to investors. Rather, the focus is on the issue of affordability and addressing the challenges faced by potential and first-time home buyers. This approach demonstrates its national role and, with it, its broader mandate to advocate for better conditions for buyers across Canada. The above statement reflects this nationwide focus, as it sees the BoC’s decision to keep interest rates stable as detrimental to the goal of making housing more accessible to buyers across the country.
These contrasting perspectives demonstrate not only that Canada’s overall housing market is not monolithic, but also that there are still housing-related issues that extend across provincial borders. Not all provinces have real estate markets in which investors play a large role, and therefore the stability that stable interest rates provide is less of an issue elsewhere than in Ontario. At the same time, affordability remains an issue for both the Ontario and national housing markets, with press releases from both CMBA branches highlighting this need through calls for buyer-friendly policy initiatives. While their reactions to the Bank of Canada’s interest rate maintenance vary, these differences are largely related to the specifics of Ontario’s housing market and are still accompanied by common goals aimed at making housing more accessible to potential homebuyers.
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