April 22nd, 2025 Mortgage Industry Update
The Bank of Canada announced on April 16th that its overnight rate will hold at 2.75%. Marks the first pause after seven consecutive rate cuts. The major shift in direction of US trade policy and the unpredictability of tariffs have increased uncertainty and diminished prospects for economic growth. The prime rate remains 4.95%.
Additionally this week:
– Households under 35 were the only age group to consistently lower their mortgage debt throughout 2024, according to new Statistics Canada data. Their average balances dropped 4.7% year-over-year in Q4, extending a trend that began in late 2022.
– Statistics Canada: Most wealth is held by relatively few households in Canada. Top 20 per cent of earners’ net worth in the fourth quarter averaged $3.3 million per household. The bottom 40 per cent of earners, by contrast, averaged around $84,000 per household.
– Statistics Canada: National inflation rate fell by more than expected in March, sliding to 2.3%. CPI slowed compared with the same time last year, down from 2.6% in February and lower than economists polled by Reuters forecasted (no change in March).
– CIBC: Canada’s population growth is likely to exceed current government forecasts despite new immigration restrictions. Projected that Canada’s population growth will reach 1.1% in 2025 and remain close to 1% the following year – higher than official estimates.
– A new Royal LePage report has revealed that Canada’s housing market is experiencing a distinct divide, with more affordable regions seeing price growth while the country’s most expensive markets struggle to maintain momentum.
– Statistics Canada: National building permit activity up in February, rising 2.9% to $13.1B. On inflation-adjusted basis, total value of permits up 3.2% compared to January, up 5.6% yearly. After 4 straight months of declines, value of non-residential permits up by 15.3% to $4.7B.
– Bank of Canada consumer survey: Share of renters looking to buy a home within next 12 months plunged last quarter. Fell to 16.1% of renters in Q1 2025, down 9.9 points from record high quarter prior. Share is 2.3 points lower annually. Represents smallest share in two years.
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.
