September 16th, 2025 Mortgage Industry Update
The Bank of Canada announced on July 30th that its overnight rate will hold at 2.75%. Marks third pause after 7 consecutive rate cuts. With still high uncertainty, the Canadian economy showing some resilience, and ongoing pressures on underlying inflation, BoC decided to hold. The prime rate remains 4.95%.
Additionally this week:
– Urbanation report: Average asking rents fell in August compared with a year ago to mark 11 months of straight declines. Average rate across Canada was $2,137 in the month for a 2.3 per cent decline from a year ago, though still up one per cent from 2023.
– Wahi: In August, 98% of GTA neighbourhoods with at least five sales saw homes sell for below asking, up from 95% in July and 89% a year earlier. This marks only the third time since Wahi began tracking the data in July 2022 that underbidding has been this widespread.
– Statistics Canada: The economy shed 66,000 jobs last month, compounding a 41,000 decline in July. Shed jobs for a second consecutive month. The national unemployment rate climbed to 7.1% in August, its highest level outside the pandemic in nearly a decade.
– TRREB: Average selling price of a home slipped by 5.2% annually in August to $1.02M. 14,038 new listings, increase of 9.4%. Average condo prices across 905 down by 10.6%. Condo sales down 3.4% in the city centre and 7.7% in the suburbs. YTD condo sales have plummeted by 16.6%.
– Re/Max Canada’s 2025 Fall Housing Market Update: Average homes prices are expected to decrease by 6.5 per cent this fall, while sales are expected to decrease by five per cent by the end of 2025.
– CIBC report: More than half of Canada’s permanent resident visas in 2024 went to people already living in the country. Of the 483,640 permanent resident visas approved last year, 252,478 recipients (50.7%) already resided in Canada. Represents dramatic increase from 39% in 2019.
– A survey conducted by Leger found that 30 per cent of Canadians said condos were once a good investment but no longer hold the same appeal. Only 11 per cent said they would buy a condo as an investment, while 57 per cent stated they would not buy a condo for any reason.
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.
