Mortgage brokers and GTA homebuyers should brace for higher borrowing costs over the next six to 12 months, according to Dr. Sherry Cooper, chief economist at Dominion Lending Centres. Speaking at the Women in Mortgage Summit Canada in Toronto on September 24, 2026, Cooper warned that a global US Treasury selloff, stubborn inflation, and Canada’s tariff-driven price pressures leave the Bank of Canada little room to ease rates.
In fact, Cooper now expects rate increases rather than cuts—a significant shift from her late August forecast. “Today’s rate could be the best one your client sees for a while,” she cautioned, urging brokers to encourage pre-approvals immediately.
The economic backdrop is stark: Canada’s five-year bond yield jumped 14 basis points in a single day this week, feeding directly into fixed-rate mortgage pricing. The US Federal Reserve raised its benchmark rate to 3.75%-4% on September 16, while the Bank of Canada held steady at 2.25% on September 2.
Cooper emphasized that fixed-rate mortgages are now attractive, as most brokers haven’t witnessed a bond bear market in 15 years. The Bank of Canada’s next rate announcement comes October 28—a critical date for GTA buyers and sellers watching market momentum.
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