July 8th, 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:
– Office of the Superintendent of Bankruptcy: Ontario saw a 5.3% drop in consumer insolvency filings in April compared to the same time last year. Consumer proposals made up 77.3% of all filings across Canada, with 80.6% in Ontario.
– Reuters survey among 16 housing experts: Canadian home prices are expected to fall 2% this year and remain flat through 2026, a sharp reversal from expectations three months ago. Growing unease over the trade war has paralyzed homebuyer activity and weakened market confidence.
– Statistics Canada: Economy contracted slightly in April, spurred mainly by the biggest manufacturing-sector decline for four years. Real GDP slipped by 0.1%, lower than its expectations, with a preliminary estimate for May also suggesting a decline by the same amount that month.
– Condo sales were down by a combined 25.1% in the city centre 416 and surrounding 905 area in May, contributing to a year-over-year dip of 6.4% in condo prices across the GTA.
– REMAX: 37% of Canadians have made compromises, such as accepting higher housing costs, to live closer to urban centres. This figure rises to 41% among GTA residents and 35% among those in GVA. 54% say they love their neighbourhoods.
– Statistics Canada estimates 27,100 Canadians emigrated out of the country in Q1 2025, a 3% increase from last year—which also saw 3% growth. Second only to 2017, it was the largest Q1 outflow ever recorded.
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.
