BoC Stays Put, Fed Turns Hawkish — What It Means for Your Next Deal
The Bank of Canada is holding rates steady through 2026 — one less worry for anyone facing a mortgage renewal. But the story isn’t that simple once you look south.
The Fed just tilted hawkish. More U.S. rate hikes may be coming, and that makes the American capital flowing into Canadian deals more expensive. If you’re underwriting with cross-border money in the stack, your cost of capital just got less predictable.
Meanwhile, Canada’s economy came in stronger than expected — Q2 GDP hit 2.2%, and household spending held up despite inflation. That keeps rental demand solid.
Bottom line: demand should stay strong, but financing conditions are stuck waiting on the Fed. That tension is exactly what belongs in your underwriting assumptions on the next deal.