Canada added close to 200,000 jobs in late 2025, surprising economists and fueling optimism that the economy may be stabilizing. On the surface, it looks like momentum is back.
But when you zoom out, a different story emerges: Canada’s job market still has meaningful slack, and that matters — especially for homeowners, investors, and anyone relying on bank financing in 2026.
Why Strong Job Numbers Aren’t the Full Story
While headline employment figures surged, economists point out that traditional job surveys can be volatile — particularly during periods of population change and shifting immigration policy.
Other labour indicators are telling a more cautious tale:
Employment growth appears uneven, not broad-based
Labour force participation remains at the low end of healthy ranges
The employment rate is still well below normal levels
Job vacancies have fallen sharply from pandemic-era highs
In plain terms: jobs are being added, but demand for workers is cooling, and businesses are hiring more carefully.
The “Low Hire, Low Fire” Economy
One of the most telling signals is what economists describe as a “low hire, low fire” environment.
People who already have jobs are generally staying put
Fewer new positions are being created
Fewer people are switching roles or upgrading income
That kind of stability sounds good — but it also means wage growth slows, bonuses disappear, and income flexibility tightens.
For lenders, that’s a red flag.
What This Means for Borrowers in 2026
Banks don’t lend based on headlines. They lend based on risk.
And right now, risk committees are seeing:
Slower projected job growth in 2026–2027
Softer business confidence
Fewer labour shortages
A job market that’s stable, but not tight
That’s why many Canadians are experiencing:
Mortgage renewals approved — then delayed
Reduced refinance amounts
More conditions added at the last minute
Income scrutiny tightening, even for strong borrowers
This isn’t panic.
It’s caution.
Why Equity Matters More Than Income Right Now
In a market where job growth is expected to slow sharply, lenders care less about upside — and more about downside protection.
That’s where equity-based lending becomes critical.
At Lendworth, we’re seeing a growing number of borrowers who:
Have strong home equity
Have stable employment
But no longer fit rigid bank formulas
Private lending fills that gap by focusing on property value and exit strategy, not short-term labour market noise.
What the Central Bank Is Signaling
With labour conditions neither overheating nor collapsing, the most likely outcome is interest rate stability.
That’s good news — but it doesn’t mean lending will loosen.
In fact, during “steady but uncertain” periods, banks often become more selective, not less.
The Bottom Line for Canadian Homeowners
Canada’s job market isn’t broken — but it’s not booming either.
That middle ground creates friction:
For renewals
For refinances
For self-employed borrowers
For investors relying on timing
If your financial plan depends on speed, certainty, or flexibility, relying on a single approval path can be risky.
At Lendworth, we structure financing around equity, timelines, and real-world conditions — especially in markets where traditional lending slows before borrowers expect it to.
📞 If you’re planning a renewal, refinance, or equity access in 2026, talk to Lendworth early.
Because when the economy is “stable but cautious,” preparation matters more than ever.