What Canada’s Latest Jobs Report Means for Mortgage Rates Heading Into 2026
December 8, 2025 | Posted by: Posted by: Dawn Stephanishin & Jenn Wightman - Vernon and Kelowna Mortgage Brokers
If you are watching the housing market in Vernon or Kelowna, the most recent labour numbers from November 2025 deserve a close look. With 54,000 jobs added nationwide and the unemployment rate dipping to 6.5 percent, the data brings new signals that matter for anyone planning a purchase or renewal. For buyers, refinancers and homeowners preparing for 2026, these trends can influence both timing and strategy.
In this post we break down what the new data shows, why it could matter for interest rates in 2026, and how you can use it to plan your next move whether you are buying your first home, renewing, or refinancing.
What exactly did the November 2025 jobs report show?
The November report showed a gain of about 54,000 jobs across Canada. Employment grew for the third straight month and the national employment rate rose to 60.9 percent. At the same time, the unemployment rate fell to 6.5 percent.
A large portion of the job growth came from part time positions, while full time gains were more modest. Youth employment also rose significantly, with noticeable increases for those aged 15 to 24.
Overall, the data points to an economy that is still growing, but not at a pace that would create heavy inflation pressure. This balance is important when considering the direction of interest rates.
Why does slower hiring increase the chance of lower mortgage rates?
Mortgage rates are strongly influenced by inflation and economic growth. When hiring slows and wage pressure eases, inflation risks tend to drop. A softer labour market allows the Bank of Canada to focus on supporting affordability rather than cooling the economy.
Since much of the new employment in November came from part time work, it suggests that businesses may still be cautious. That type of growth is less likely to fuel large wage increases, which can help stabilize inflation. If inflation remains steady or moves lower, the Bank may feel more comfortable easing rates as we move into 2026.
For buyers across the Okanagan, this creates an opportunity. Better affordability may be on the horizon.
Could mortgage rates go down in 2026 based on this data?
It is possible. The mix of slower wage growth, higher part time employment and stable overall participation may help support a more favourable interest rate environment. While nothing is guaranteed, the November data leans slightly toward improved borrowing conditions rather than tighter ones.
Even a small rate reduction can make a noticeable difference. Buyers in Vernon and Kelowna may find they are able to qualify for a little more, or that the payment on their target home becomes more comfortable.
What does this mean for first time buyers in Vernon and Kelowna?
First time buyers are often watching rates closely because even small changes can shift affordability. If you are hoping to buy in 2026, the latest labour numbers give a bit of breathing room. A market that is stable instead of overheated may help improve borrowing costs in the coming months.
Starting your mortgage pre approval now ensures you are ready as soon as the right home appears. Vernon tends to move at a steady pace, while Kelowna can pick up quickly when buyers feel more confident. Being prepared keeps you ahead of surprises.
What about homeowners considering refinancing or renewal in 2026?
If you have been waiting for a better refinancing window, this is a good time to review your options. As part time growth increases and full time hiring slows, inflation pressure may ease, which could allow borrowing costs to move gradually lower.
For those with a renewal coming up in 2026, starting early helps you compare lenders and secure the best possible rate. The November jobs report does not point to aggressive economic conditions, which may support a more stable rate environment as the year begins.
Should buyers get pre approved now even if they expect rate changes?
Yes, absolutely. A pre approval offers several advantages. You get a rate hold for protection and you gain a clear picture of your budget. If rates go down, your file can often be updated. If rates rise temporarily, you have the benefit of a locked in rate.
To explore financing and next steps in Vernon, visit the home purchase page here: Home purchase mortgages in Vernon.
What steps should you take now with this new data?
Here are a few steps that can help you prepare for the year ahead:
- Start your mortgage pre approval to secure a rate hold
- Review your renewal timeline and compare lender options early
- Explore refinancing if you have built equity
- Prepare necessary documents so you can act quickly when rates shift
- Speak with a mortgage broker who understands the Vernon and Kelowna markets
Taking action now gives you flexibility and confidence as we move into 2026.
How do Vernon and Kelowna fit into the national picture?
Local markets respond differently to national trends. Vernon usually moves at a steadier rhythm and can offer more breathing room during rate transitions. Kelowna’s demand is often higher, especially in neighbourhoods with strong lifestyle appeal. When rates shift, Kelowna can heat up quickly.
Working with a local mortgage professional ensures you understand how national economic data affects real opportunities in your specific area. Whether you are planning to buy, refinance or renew, personalized advice makes a noticeable difference.
If you would like guidance tailored to your goals, I am here to help. Encouraging readers to book a consultation or contact me is the next step if you want support planning for 2026.
Frequently Asked Questions About Mortgage Rates and the November 2025 Jobs Report
Does a lower unemployment rate mean mortgage rates will stay high?
Not necessarily. The quality of the job growth matters. Since many of November’s gains were part time and youth focused, it reduces wage pressure, which can help stabilize or lower mortgage rates.
Could rates rise again even with this new data?
It is possible. Rates reflect inflation, global conditions and housing demand. The jobs report is only one factor, so staying prepared is always a good strategy.
Is pre approval still useful if rates might drop later?
Yes. Pre approval gives you a rate hold and helps you move quickly when you find a home. If rates drop before your mortgage closes, your approval can often be updated.
Is now a good time to explore refinancing?
If you have equity and your payments would benefit from a lower rate, this is a good moment to review scenarios. A softer labour market may support gradual rate improvements in 2026.
Should first time buyers wait for a bigger rate drop?
Waiting for perfect timing can cause you to miss good opportunities. Being pre approved early gives you readiness and flexibility, which are often more valuable than trying to time rates exactly.