October 21st, 2025 Mortgage Industry Update
The Bank of Canada announced on September 17th that its overnight rate will lower to 2.50% from 2.75%. Marks first rate cut since March. The cut is mainly due to declining GDP and rising unemployment rates nationally. The Bank continues to monitor the tariff situation with the US. The prime rate is now 4.70%.
Additionally this week:
– Statistics Canada: Construction sector saw another setback in August, as total value of building permits slipped 1.2% to $11.6B. Marks sixth monthly drop so far in 2025. Residential permits fell 2.4% to $7.0B, with single-family construction intentions dropping $112.3M to $2.5B.
– Canadian home prices were virtually flat in the third quarter of 2025, inching up just 0.1% year-over-year to $816,500, while slipping 1.2% from the previous quarter, according to the new Royal LePage House Price Survey and Market Forecast.
– Statistics Canada: Nation’s labour market surprised in September, adding 60,400 jobs while the jobless rate stayed at 7.1%. Economists had widely expected a far more modest jobs gain, with the median forecast at just 5,000. Employment rate edged up to 60.6%.
– Urbanation: Average asking rents in Canada fell 3.2% annually in Sep to $2,123. Marks 12th straight month of annual declines. Average asking rents down 1.2% from two years ago, marking first two-year decline since Jan 2022. Ontario down 2.7% to $2,316. Toronto down 2.9% to $2,592.
– TRREB: Average price for a Toronto condo apartment dropped to $655,231 in September, down 4.3% annually. Marks the lowest point for condo prices in the region in at least four years. However, sales in Toronto rose 7.2% year-over-year, with 1,437 units changing hands.
– Wahi: In September, 8% of neighbourhoods across GTA in which at least five homes changed hands were in overbidding territory, compared to just 1% in August. Majority of neighbourhoods (92%) homes were sold under the list price, while 1% were selling at asking price.
– TRREB: 5,592 home sales in September, up 8.5% from 5,155 a year earlier. New listings also up 4% to 19,260. However average selling price fell to $1,059,377, down 4.7% from September 2024, but up 0.2% monthly. MLS Home Price Index Composite benchmark dropped 5.5% year-over-year.
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.
