At the same time, some lenders continue to offer limited-time discounts on select shorter terms, creating a patchwork of rate movement across the market.
RBC’s latest increases pushed its 3-, 4-, and 5-year fixed rates up another 5 basis points, bringing its 5-year fixed uninsured offering to 4.49%, up from 4.29% in March. The hikes follow a similar round of increases earlier in May.
Compared to peers, RBC now sits near the top of the pack for published special rate pricing. Among the big banks, CIBC and National Bank remain the best published deals at 4.44% for uninsured 5-year fixed terms. Broker-channel rates and select digital offerings remain available in the low-4% range—though these, too, have come under upward pressure in recent weeks.
“The market is meandering,” said rate strategist Ryan Sims. “Hikes are occurring with more intensity and speed on the uninsured bucket right now than the insured.” He noted that the 5-year Government of Canada bond yield recently tested 3.00% and fell back to the 2.81% range. “We need a massive data surprise to break out of the 2.71%–2.99% band.”
Markets are pricing just a 32% chance of a Bank of Canada cut this week, but that probability jumps to 75% by July—implying a potential shift in sentiment ahead. “Maybe tariffs take a bite out in the data? Maybe inflation comes down? Who knows,” said Sims. “But the market is clearly expecting something.”
In his latest blog, mortgage broker Dave Larock said the Bank’s ability to act is limited in the short term. “The BoC’s hands are effectively tied,” he wrote, pointing to an April rise in both CPI-Trim and CPI-Median above 3%. Still, Larock believes further easing is justified: “There are clear signs that our economy could otherwise benefit from monetary-policy stimulus.”
As CMT has previously reported, lenders are being cautious—especially when it comes to uninsured pricing. Mortgage broker Ron Butler has previously noted that lenders are raising rates to preserve margin, even in cases where funding costs haven’t increased.
Sims added that if volatility eases, more competitive pricing may return. “Lenders will feel okay to get competitive by 5 or 10 bps here or there when they have clarity that the bond market is at least stable.”
But for now, fixed mortgage pricing remains in flux—and for borrowers, rate relief may have to wait until late summer. “Summertime tends to be less volatile anyways as governments are on recess, so you don’t get major policy moves or announcements,” Sims added. “I would surmise that you could realistically expect bond markets to meander for the next 90 days—basically until Labour Day.”
Mortgage arrears edge up nationally, remain low overall
The number of Canadian mortgages in arrears rose slightly in March, with 11,003 residential loans—0.22% of all mortgages—delinquent by three or more months, according to the Canadian Bankers Association.
Saskatchewan continued to post the highest arrears rate in the country at 0.54%, followed by Manitoba at 0.32% and Alberta at 0.28%. Ontario and B.C. both recorded arrears rates of 0.20%, while Quebec remained below the national average at 0.18%.
Despite regional variations, arrears remain historically low, suggesting most borrowers are still managing to meet their payments—even as many face higher mortgage costs at renewal.
Laurentian sees continued softness in mortgage book as volumes dip 4%
Laurentian Bank reported a year-over-year decline in residential mortgage volumes in Q2, with total balances down 4% to $16.1 billion. The bank’s share of Alt-A lending remained steady at 26%, while insured mortgages accounted for 61% of the book, according to its latest investor presentation.
Loan loss provisions in the residential mortgage portfolio rose slightly to $2 million, up from $1.1 million the previous quarter. However, the bank emphasized the high quality of its book, noting an average uninsured loan-to-value ratio of just 50%.
Gross impaired residential loans climbed to $44.8 million, a modest increase from Q1, though the mortgage segment continues to perform better than commercial lending in terms of delinquencies.
Laurentian’s net interest margin held steady at 1.85% while adjusted net income slipped to $34 million, down 16% year-over-year.
FSRA Consumer Panel highlights key consumer protections in latest annual report
Ontario’s financial services regulator is spotlighting the growing role of consumer input in shaping mortgage-related policy.
In its newly released 2024–25 annual report, the Financial Services Regulatory Authority of Ontario’s (FSRA) Consumer Advisory Panel outlined its work to strengthen protections for consumers—particularly vulnerable ones—across sectors including mortgage brokering.
Over the past year, the panel made seven formal submissions to FSRA, with topics ranging from auto and life insurance to principles-based regulation and mortgage oversight. It also participated in multiple internal working groups to help develop new frameworks and tools, such as enhancements to FSRA’s Financial Professionals Title Protection Framework and its Check Credential Tool.
The panel met six times with FSRA leadership and submitted recommendations on the regulator’s proposed 2025–26 Statement of Priorities, aiming to ensure that consumer voices remain central in FSRA’s policy development.
More details are available on FSRA’s Consumer Advisory Panel webpage.
OSFI unveils streamlined structure to sharpen risk and policy focus
Canada’s federal banking regulator has rolled out a new operating model aimed at strengthening its core functions of supervision, risk surveillance, and policy response.
In a letter to federally regulated financial institutions, the Office of the Superintendent of Financial Institutions (OSFI) outlined changes that took effect June 1, reducing its structure from six to four main sectors. The reorganization is intended to improve efficiency and support OSFI’s growing mandate around national security and integrity risks.
Key changes include:
- The creation of the Risk, Strategy and Policy Sector, led by Deputy Superintendent Angie Radiskovic, which will focus on emerging risks, AI oversight, and policy reform.
- A new Integrity, National Security and Integrated Solutions Sector, headed by Deputy Superintendent Kathy Thompson, will coordinate responses to threats like foreign interference.
- The Supervision Sector, under Deputy Superintendent Ben Gully, will now include a Catastrophic Risk division focused on climate and disaster-related risks.
- The Office of the Chief Actuary remains unchanged, continuing its independent oversight of government social programs.
Mortgage snippets
- New home prices post 0.4% monthly decline in April: New home prices in Canada fell 0.4% in April, marking their largest monthly drop since November. The decline was led by a 0.5% drop in house-only prices, while land-only prices were unchanged. This is the third decline in the past four months, reflecting continued softening in the new construction market.
- B.C. broker fined $35K for failing to report fraudulent application: The BCFSA has fined mortgage broker Siavash Ahmadi $35,000 for failing to report a misleading mortgage application submitted under his Filogix account while he was abroad.
The application, filed by then-partner Ksenia Ivanova, contained falsified information that Ahmadi did not correct or disclose upon discovery. The regulator also cited multiple instances where Ahmadi accepted documents without verifying their authenticity. Ivanova was previously fined the same amount.
- Consumer confidence inches up on real estate optimism: Canadian consumer confidence rose to 51.28 in late May, up more than four points from a month earlier, according to the Bloomberg-Nanos Canadian Confidence Index. The rebound was driven by improved sentiment on housing, with 38.3% of respondents expecting home prices to rise—up nine points over the past four weeks.
- Renovation costs edge higher—except in Ontario: Canada’s residential renovation costs rose 0.3% in Q1 2025—the slowest pace since mid-2020—driven by higher prices in Quebec (+0.9%) and Alberta (+1.0%). Toronto bucked the trend with a 0.5% drop. Rising concrete and wood prices pushed up project costs, while tariff uncertainty and cautious consumer spending continued to delay renovation plans.
- Business optimism dips as costs and tariffs weigh: Only 70% of Canadian businesses are optimistic about the year ahead—the lowest share since early 2024—amid rising cost pressures and trade tensions, according to Statistics Canada’s Q2 2025 Survey on Business Conditions.
Nearly half of firms flagged inflation as a top concern, while over one-third expect labour-related obstacles. Tariff impacts are growing, with nearly 1 in 5 firms expecting significant disruption from recent U.S. and Canadian trade actions.
Next Steps: Mortgage industry career moves
“Next Steps” is a feature in our Mortgage Digests that highlights notable job changes and career advancements within the mortgage industry. If you have a job update to share, we welcome your submissions to keep the community in the loop.
Fiona Campbell retires after nine years of leadership at Manulife Bank
Fiona Campbell, a distinguished executive in the mortgage broker industry, is retiring after nine impactful years at Manulife Bank.
Since joining in 2016, Campbell has been pivotal in nurturing broker relationships and expanding Manulife Bank’s national footprint. Her efforts led the broker sales channel to achieve over $3.3 billion in annual funded volume in 2024.
Join us in congratulating Fiona Campbell on her well-deserved retirement and thanking her for her outstanding contributions to Manulife Bank and the mortgage broker industry.
TMG promotes Tammy Poirier to Associate Vice President, Broker Experience
TMG The Mortgage Group has promoted Tammy Poirier to Associate Vice President, Broker Experience.
Poirier, who has more than 35 years of experience in the real estate and mortgage industry, has been with TMG for over four years. In that time, she has worked closely with brokers across the country and played a key role in developing national events and broker support initiatives.
“Tammy embodies the true spirit of TMG – customized and full-service support…she brings a wealth of knowledge and a genuine passion for helping others succeed,” said Veronica Love, Chief Revenue Officer at TMG. “Tammy’s impact on our growth is undeniable, and we are so proud to celebrate this next chapter with her.”
In her new role, Poirier will focus on enhancing the delivery of TMG programs, strengthening broker engagement and aligning national resources to better support agents.
Lindsay MacInnis joins TMG as Area Vice President for Atlantic Canada
TMG The Mortgage Group has appointed Lindsay MacInnis as Area Vice President for Atlantic Canada.
MacInnis brings a background in mortgages, banking, technology and grassroots marketing, and is already well known to many within the TMG Atlantic network. She will work alongside Andrew Matheson and Steve Whitehead to support brokers across the region and advance TMG’s growth strategy.
“At TMG, we place great emphasis on strong regional leadership to ensure our brokers receive the support and resources they need to succeed,” said TMG President Dan Pultr. “Lindsay knows our people well and embodies the core values that make TMG Atlantic so special. She has the experience to support our brokers and contribute to the collective success of TMG.”
CENTUM Canada appoints Lori Smith as VP of Growth & Development
CENTUM Financial Group has named Lori Smith as Vice President, Growth & Development, effective immediately.
Smith brings more than 20 years of experience in financial services, including senior roles at Manulife Bank, Merix, and FNF Canada. Most recently, she served as Regional Vice President at Manulife Bank, where she led the company’s top-performing broker sales team.
In her new role, Smith will lead CENTUM’s national growth strategy, oversee sales performance and partnerships, and support broker engagement across Canada.
“Lori is a strategic leader with deep roots in the broker channel and a proven track record of driving growth,” said Adrian Schulz, President of CENTUM. “She brings the right mix of industry experience, relationship-building, and execution to help shape our next chapter.”
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Last modified: June 2, 2025