What happened
A veteran mortgage broker, Ron Butler, is advising prospective home buyers in Canada not to rush into purchases due to expected interest rate hikes by the Bank of Canada. Butler warns that some realtors may urge buyers to act quickly to avoid higher borrowing costs, but he believes this could be a pressure tactic.
Butler, who has over three decades of experience in the industry, notes that rapidly climbing fixed mortgage rates may lead to a small increase in activity among buyers who have secured rate holds or mortgage pre-approvals. However, he expects most prospective buyers to wait and see if rates come down, as rapidly changing rates tend to pause buying activity rather than produce a sustained rush into the market.
According to recent data, home sales across Canada fell 0.7 percent between July and August, and were down 6.9 percent in August 2026 compared to August 2025. The Canadian Real Estate Association (CREA) has also warned that higher fixed mortgage rates, driven in part by rising government bond yields, are likely to further slow the housing market heading into 2027.
Butler advises prospective buyers to be cautious of 'buy now' pressure tactics and to consider the market's potential for further changes. He notes that similar arguments were made in 2021, when home prices rapidly increased, but prices later fell in many areas in 2022 and beyond.