Alberta’s housing market is still active, but new economic data shows that Canadians are spending less. This slowdown in consumer spending is putting pressure on the Bank of Canada to continue cutting interest rates in 2026. For Alberta homebuyers, this could mean more affordable borrowing over the next year.

As your mortgage broker, I’m here to help you understand what’s happening and why it matters for your homebuying plans.

Retail Spending Is Slowing Down

Retail sales across Canada fell by 0.7% in September. Most of the drop was caused by a big decline in motor vehicle sales. Other types of stores saw a mixed bag in sales but the overall picture shows that Canadians are spending less than before.

Because of this, household spending only grew by about 1.0% in the third quarter of 2025, compared to 4.5% in the second quarter. That’s a big slowdown.

Why This Matters for the Bank of Canada

When people spend less, businesses feel the slowdown too. Surveys show more than half of Canadian companies now say “not enough demand” is their biggest challenge. That means fewer customers coming through the door and slower growth.

Even though the Bank of Canada recently hinted that last month’s rate cut might be the end of the easing cycle, this new economic data tells a different story. With demand weakening and the economy losing steam, many experts believe the Bank of Canada will need to cut rates further this month and in early 2026—possibly lowering rates below the “neutral” level to help boost growth.

What This Means for Alberta Homebuyers

For people looking to buy a home in Alberta in 2026, this environment could work in your favour.

• Slower economic activity often leads to lower interest rates
• Lower rates mean more affordable mortgage payments
• Buyers may gain more purchasing power as borrowing costs drop
• There may be more opportunities to get into the market with better terms

This doesn’t mean the market will slow down completely—Alberta’s population growth and strong job market will continue to support housing demand. But easing mortgage rates can reduce some of the pressure buyers felt during the higher-rate period.

How I Can Help

Navigating rate changes can be stressful, especially when the economy is sending mixed signals. As your mortgage broker, I stay on top of the latest numbers so I can help you:

• Understand when it makes sense to lock in a rate
• Explore options that fit your income and goals
• Take advantage of upcoming rate cuts
• Plan ahead for buying your first home or upgrading in 2026

If you’re thinking about buying a home in Alberta next year, now is a great time to start planning. Even small changes in rates can make a big difference in your monthly payments.

If you’d like to chat about your situation or get pre-approved, I’m here to help every step of the way.