November 25th, 2025 Mortgage Industry Update
The Bank of Canada announced on October 29th that its overnight rate will lower to 2.25% from 2.50%. This marks the second consecutive rate cut after a brief pause in rates earlier this year. The Bank expects inflationary pressures to ease in the coming months ahead. The prime rate is now 4.45%.
Additionally this week:
– Housing affordability crisis has moved beyond GTA. Fraser Institute analysis found that mortgage payments on a typical home now consume more than 50% of median after-tax family income across all 14 of Ontario’s largest urban centres, with Toronto reaching an unsustainable 110.2%.
– Bloom Holding: Canada’s major metros are among hardest places on earth for young people to buy their first home, ranking near bottom of a 70-city affordability index. Typical first-time buyer in Vancouver enters the market at age 46, Toronto and Montreal at around 40 and 39.
– CMHC: National mortgage delinquency rate fell for first time in three years in Q2 2025, dropping to 0.22%. Ontario’s rate climbed to 0.23%, overtaking national average for first time since 2012. Toronto’s rate jumped from 0.15% in Q2 2024 to 0.24% in Q2 2025.
– Statistics Canada: National annual inflation rate eased to 2.2% in October, as falling gasoline and slower-rising grocery prices helped cool consumer costs. Above median projection in a Bloomberg survey of economists, who were expecting 2.1%. However, down from 2.4% in September.
– CREA: October home sales (42,068) up 0.9% monthly, marking six increases in the past seven months. However, down 4.3% yearly. New listings down 1.4% monthly. Inventory at about 189,000, up 7.2% yearly. National average sale price landed at $690,195, down 1.1% yearly.
– Statistics Canada: Total value of building permits issued in Canada climbed 4.5% in September to $11.7 billion. Gain marked a solid monthly rebound after two weaker months. Residential permits rose 4.8% to $7.3 billion. Non-residential permits were up 4.0% to $4.4 billion.
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.
