April 15th, 2025 Mortgage Industry Update
The Bank of Canada announced on March 12th that its overnight rate will be cut from 2.75% to 3.00%! Marks the seventh consecutive rate cut from the bank. Heightened trade tensions will likely slow pace of economic activity and increase inflationary pressures in Canada. The prime rate decreases to 4.95%.
Additionally this week:
– Statistics Canada: In 2023 total of 484,320 tax filers reported contributing to First Home Savings Account (FHSA), with median contribution of $8,000—the maximum allowed for the year. Largest group of contributors were younger Canadians aged 25 to 34, who accounted for over 57%.
– Urbanation: National average asking rent in March was $2,119, marking sixth straight month of yearly declines. Rents were down 2.8% annually, and up 1.5% from February – first increase since last September. Average asking rents still 17.8% higher than they were five years ago.
– Bank of Canada quarterly business outlook survey: Trade-related uncertainty is dampening business and consumer confidence in Canada. 32% of firms are now planning for a potential recession in the next 12 months, more than double the figure seen over the past two quarters.
– Statistics Canada: National job market weakened sharply in March, posting largest monthly employment drop in 3+ years. Economy shed 33,000 jobs, with unemployment rate up to 6.7%. Economists had forecast gain of 10,000. First monthly loss since July and largest since January 2022.
– BuildForce Canada estimates that 22% of the residential construction workforce, about 259,100 workers, is set to retire over the next eight years. Only 228,100 new workers are projected to enter the industry in that time, creating a shortfall.
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.
