July 15th, 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:
– Canada’s non-bank financial intermediation sector continues to grow rapidly, expanding role of private lenders, including the mortgage lending space traditionally dominated by banks. Value of Canadian NBFI assets climbed 5.7% in 2023, rebounding from 5.5% decline the year prior.
– CMHC has released its 2025 Mid-Year Rental Market Update, reporting a notable decline in advertised rents across several of the country’s largest urban centres in Q1 2025. Advertised rents in Calgary, Toronto, Vancouver and Halifax fell between 2% and 8% year over year.
– Wahi: Underbidding on homes hit near-record highs in GTA last month. In June, 93 per cent of GTA neighbourhoods with at least five home sales were in underbidding territory, compared to 87 per cent in May and 71 per cent during the same month last year.
– TRREB: The average price of a condo in the city centre tumbled by a further 4.3% in June compared with 2024 to $731,232. The wider 905 region saw prices slide by 4.9% to an average of $630,156.
– TRREB: GTA home sales down 2.4% annually in June. 6,243 properties changed hands. 19,839 new properties were listed for sale, up 7.7%. Average selling price decreased 5.4% to $1,101,691. Active listings hit 31,603, up 30.8%.
– Statistics Canada: Merchandise trade deficit to USA fell to $5.9B and exports slid by 0.9% in May – although total exports were up by 1.1%, the first time in four months they’ve risen. Canada’s share of total exports headed to the US fell to 68.3% in May – one of the lowest.
– RBC Economics: Hasn’t been this affordable to own a home in Canada in 3 years. Latest national affordability measure dropped to 55.1% in Q1 2025, down from 60.7% in 2024. Improvement driven by interest rate cuts, small declines in home prices, and steady household income growth.
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.
