In reality, it reveals a much deeper shift in the Canadian economy — one that directly affects homeowners, borrowers, and anyone renewing a mortgage in 2026.
Here’s what’s really happening — and why more Canadians are quietly turning to equity-based financing as banks tighten.
December Jobs Report: The Headline vs. the Reality
According to Statistics Canada, December’s labour market showed:
+8,200 new jobs added
Unemployment rate rose to 6.8%, up from 6.5% in November
50,200 full-time jobs gained
42,000 part-time jobs lost
Youth unemployment climbed to 13.3%
Wage growth cooled to 3.4% year-over-year
This follows three strong months from September to November, where the economy added 181,000 jobs after a sluggish first half of 2025.
📌 Translation: More Canadians are re-entering the job market — but not everyone is finding work fast enough.
Why Unemployment Rose Even Though Jobs Were Added
Economists aren’t panicking — but they aren’t celebrating either.
RBC’s assistant chief economist noted that more people actively looking for work pushed unemployment higher — often a sign of optimism. But optimism doesn’t pay mortgages.
At the same time:
Hiring remains uneven
Younger Canadians are struggling
Professional and technical services lost 18,000 jobs
Manufacturing and healthcare gains remain modest
The result? Income uncertainty, especially for households already under pressure.
What This Means for Interest Rates in 2026
The December report is the final labour snapshot before the Bank of Canada makes its first rate decision of the year.
Key takeaway:
Economists expect the Bank of Canada to hold rates steady
No clear signal for aggressive cuts
Banks remain cautious with lending
💡 That means qualifying is still hard — especially if income is variable, self-employed, or recently changed.
The Hidden Impact on Homeowners & Renewals
This is where things get real.
In 2026, many homeowners are facing:
Mortgage renewals at much higher rates
Tighter bank underwriting
Income scrutiny
Reduced HELOC limits
Employment volatility in households
Even borrowers with strong equity are being declined — not because of property value, but because of income optics.
Why More Canadians Are Using Home Equity Instead of Banks
Private lenders are stepping in where banks can’t.
At Lendworth, we’re seeing a surge in homeowners using equity to:
Bridge employment gaps
Consolidate high-interest debt
Avoid forced sales
Refinance during renewal shock
Buy time until income stabilizes
Why equity-based lending works in today’s market:
✔ No bank stress test
✔ Flexible income considerations
✔ Faster approvals
✔ Short-term solutions with clear exit strategies
Your home didn’t lose value — the rules just changed.
The 2026 Reality Check
Canada’s job market isn’t collapsing — but it’s uneven, cautious, and unforgiving.
If your income is:
Variable
Self-employed
Commission-based
Recently changed
Or temporarily disrupted
Banks may say no — even when the deal makes sense.
That doesn’t mean you’re out of options.
Talk to a Real Equity Lender Before the Pressure Builds
At Lendworth, we specialize in first and second mortgages, equity loans, and refinance solutions designed for today’s economy — not yesterday’s bank rules.
📞 Call: 905-597-1225
Your equity deserves more™