December 9th, 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:
– Canadian Bankers Association: There were 12,040 mortgages in arrears in September, up 17.8% from last year and 63.2% higher than the June 2022 record low. This was the most since September 2020, and 5.6% higher than 2019.
– Consumer insolvency filings in Canada surged to 137,295 in 2024, up from 90,092 in 2021, according to Office of the Superintendent of Bankruptcy’s latest Canadian Consumer Debtor Profile report. The insolvency rate reached 4.2 per 1,000 adult Canadians, highest level since 2019.
– Statistics Canada: The national economy avoided slipping into a technical recession in 2025’s third quarter, posting annualized growth of 2.6%. However, luckily, it did soar past initial forecasts. Q2 GDP was also revised to a 1.8% dip.
– A new study has found that Torontonians making the median family income would need to devote an impossible 110.2 per cent of it to monthly mortgage payments, after taxes, to afford the average mortgage here. That’s up from 56 per cent in 2014, according to the Fraser Institute.
– Statistics Canada: Foreign direct investment in Canada is now at its lowest level since last year. Hit the $80.3 billion mark in Q3. Canada’s investment in foreign securities jumped to $57.6 billion. Activity resulted in a net portfolio investment inflow of $22.7 billion.
– TransUnion: Q3 total national mortgage balance rose 4.1% to $1.89 trillion. Mortgage originations were up 18% however. Average new mortgage loan amount increased 4.1% to $359,623, despite some easing in home prices.
– Equifax Canada: 90-day non-mortgage balance delinquency rate was 1.63% in Q3, up 14% annually. Overall consumer debt totalled $2.62 trillion, a 3.4% increase compared with a year ago. Average non-mortgage debt per consumer in Q3 was $22,321, up $511 from a year ago.
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.
