August 12th, 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:
– Statistics Canada: The national economy shed some 41,000 jobs in July. The unemployment rate held steady at 6.9%. July’s drop in jobs partially offsets an unexpected gain of 83,000 positions in June. Economists had expected a slight job gain however.
– Office of the Superintendent of Bankruptcy: Total of 35,114 filings for consumer insolvency in Q2, up 2.6% quarterly. However stable year over year at a 0.1% increase. Figure is nearly 5% above the pre-pandemic average for the same period. Ontario had highest number at 13,292.
– TRREB: In the city-centre 416, average condo prices slid by 8.6% in July, coming in at $684,257. In the wider 905, prices were down by 10.3%, to $590,004. Across the 905, there were 548 condo sales last month (up 10.7%), while the 416 saw a mild uptick of 3.4%, to 1,028.
– TRREB: Home sales jumped unexpectedly in July, rising by 13% over June. Totalled 6,100 across the city, up 10.9% over 2024. MLS Home Price Index Composite benchmark dropped by 5.4% annually, with the average selling price – just over $1.05 million – slipping by 5.5%.
– Urbanation report delving into GTHA’s Q2-2025 rental market performance reveals that 65% of purpose-built rental buildings completed since 2000 are now offering perks to renters. Marks significant increase from 36% of buildings that offered incentives during Q2 last 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.
