March 11th, 2025 Mortgage Industry Update
The Bank of Canada announced on January 29th that its overnight rate to 3.00% from 3.25%! Marks the sixth consecutive rate cut from the bank. The economy is expected to strengthen gradually and inflation to stay close to target moving forward. The prime rate decreases to 5.20%.
Additionally this week:
– Wahi: Share of GTA neighbourhoods in overbidding territory roughly doubled between January and February. 51 neighbourhoods (20%) with at least five home sales were in overbidding territory, compared to 26 (11%) in January. Highest level of overbidding activity since June 2024.
– Equifax: Mortgage fraud rates fell from 0.46% in Q4 2023 to 0.19% in Q4 2024. However, fraudulent financial documents, including falsified bank statements and down payment information, remain a major issue, accounting for more than 90% of mortgage fraud cases.
– TRREB: GTA home sales down to 4,037 last month, a 27.4% annual decline. Average selling price down 2.2% to $1,084,547 as the composite benchmark price down 1.8%. 12,066 properties were newly listed, up 5.4%, as total inventory in the region soared 76% to 19,536.
– Canada’s economy posted stronger-than-expected growth in the final quarter of 2024, with GDP expanding at an annualized rate of 2.6%, according to new data. The increase, which surpassed market forecasts, was attributed to broad-based gains in both household and business spending.
– CMHC: Housing crisis won’t be solved overnight. Under current conditions, it could take up to 30 years for new housing supply to fully impact affordability. Challenge is reducing delays, streamlining approvals, and adopting new construction methods to make housing more attainable.
– Equifax: Total consumer debt in Canada reached $2.56T by the end of 2024. Was a 4.6% increase from 2023, and driven largely by non-bank auto loans, which rose 11.7%. Average non-mortgage debt per consumer climbed to $21,931, surpassing pre-pandemic levels.
Stay tuned for the next update!
For any questions and concerns please do not hesitate to call Harpreet Singh The Mortgage King at (416) 795-1919.
