10/21/2026
Inflation is back above 3%. Here’s what it means for you. 🇨🇦
Builders > Start your projects now, cost of borrowing could be going up based on these stats, so not only would build cost go up, your end users buying your end product will also have to pay a higher cost of borrowing as well.
Statistics Canada’s latest numbers show inflation rose to 3.1% in September, up from 3.0% in August.
The main driver is energy. Gas prices are up almost 28% from a year ago, and overall energy costs are up 19%, mostly because of the conflict in the Middle East pushing oil higher.
Grocery inflation actually slowed last month. But groceries are still 33% more expensive than they were in 2020. Prices aren’t coming down. They’re just rising more slowly.
What this means for your mortgage:
📌 The Bank of Canada has held its rate at 2.25% all year. With inflation running above its 2% target, rate cuts are off the table for now, and some economists think a hike could come in early 2027.
📌 Fixed rates are tied to bond yields, which are up sharply from a year ago. That’s why fixed rates have climbed even without a Bank of Canada move.
📌 BC home sales are down about 9% from last year, and Metro Vancouver prices are down about 5.5%. Buyers have more choice and more room to negotiate.
My take: Plan for higher costs to stick around. If your mortgage renewal is coming up in the next 6 to 12 months, start the conversation now, not 30 days before. The right structure (fixed vs. variable, term length) matters more than ever.
For more information contact me @ 604-704-4155.
