June 24th, 2025 Mortgage Industry Update
The Bank of Canada announced on June 4th that its overnight rate will hold at 2.75%. Marks second pause after 7 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:
– 42% of new mortgages were on a variable rate by February, CMHC revealed in its latest residential mortgage industry report, thanks to a shrinking premium for those mortgage types.
– CREA: Seasonally adjusted home sales rose by 3.6% from April to May, marking the first monthly gain since November. However were down by 4.3% annually. 3.1% increase in new listings. Total listings 13.2% higher annually. Benchmark price down by 0.2%, settling at $690,900.
– A recent survey from TD Bank revealed growing financial strain among borrowers, with 73% of respondents planning to reduce spending in anticipation of a costlier renewal. Nearly half of surveyed homeowners expect their mortgage payments to rise once they renew.
– Statistics Canada: Total borrowing slowed during Q1. Households took on $34.5 billion in credit market debt, down from $41.6 billion in the previous three months. Mortgages continued to account for the largest portion of household debt, representing close to 75% of the total.
– Statistics Canada: Canadian building intentions hit a roadblock last month. The total value of building permits fell to just $11.7 billion in April, down 14% from last year. Residential permits were 14.6% lower than last year, coming in at $7.4 billion in April.
– Between 2016 and 2021 Canada added nearly 500,000 new renter households, driving the national renter share past 33%, the highest in the country’s history. Single-family rental households grew by 14.7%, outpacing the 9.4% growth seen in traditional, multi-unit apartment rentals.
– Canada’s proposal to eliminate the federal goods and services tax (GST) on select new home purchases will see an average of $26,832 in savings for the typical first-time buyer, according to a new report from the Parliamentary Budget Officer.
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.
