Are Higher Mortgage Rates About to Push Canadian Home Prices Down?

Canadian home prices are already falling. Now, with mortgage rates rising again and the Bank of Canada raising its policy interest rate to 2.50% on October 28, 2026, could Canada's housing market be heading for another major downturn? Metro Vancouver home prices have fallen more than 5% over the past year, while the Fraser Valley has experienced declines exceeding 7%. At the same time, weaker employment, cautious buyers, and higher borrowing costs are creating new challenges for Canada's real estate market. So are we heading toward a housing market crash, or could this be a prolonged correction before the next recovery? In this video, Evangeline Villanueva, mortgage broker and partner at Alltrust Mortgage Solutions, breaks down what's really happening in Canada's housing market and what it means for homeowners, first-time buyers, sellers, and investors. In this video, you'll learn: ✅Why Canadian home prices were already falling before mortgage rates started rising ✅How higher fixed and variable mortgage rates affect affordability and purchasing power ✅Why Canada's weakening job market could be a bigger risk than interest rates ✅What the October 28 Bank of Canada rate hike means for homeowners and buyers ✅Why Vancouver's slowdown in new condo construction could create future housing shortages ✅Whether Canadian home prices could fall further in 2026 and 2027 ✅What buyers, sellers, and homeowners approaching mortgage renewal should consider right now The big question isn't just whether home prices will fall further. It's whether higher borrowing costs, weaker employment, and changing housing supply could reshape Canada's real estate market over the next several years. If you found this video helpful, don’t forget to like, subscribe, and share it with someone who’s buying a home or renewing their mortgage. 📌WATCH NEXT: ▶️DON’T LOCK IN YET Mortgage Rates Are Rising Again — Should You Choose Fixed or Variable? ▶️FIXED VS. VARIABLE The Smartest Way To Choose A Rate in 2026 (Most Canadians Are Choosing Wrong) ▶️BANK VS. BROKER The Smartest Way To Get A Mortgage in Canada 2026 CONNECT WITH US: 📅 Book a Mortgage Strategy Call: https://msgsndr.com/widget/booking/zq... 🌐 Learn more about Alltrust Mortgage Solutions: https://alltrustmortgage.com/ 📲 Follow me on Instagram: @evamortgages   / evamortgages   JOIN THE CONVERSATION: Do you think home prices in British Columbia still have further to fall, or are we finally approaching the bottom of the market? Share your thoughts in the comments! Subscribe for practical Canadian mortgage advice, housing market updates, and insights to help you make more informed financial decisions. #CanadianHousingMarket #MortgageRatesCanada #CanadaRealEstate