October 15th, 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:
– Canada Housing Quarterly Chartbook from Oxford Economics: Canadian home prices are set for a brief dip before stabilizing and recovering modestly. Neither a bust nor a boom is likely for house prices over the next few years.
– 2025 Aging & Affordability Insights Benchmark Report from fintech company Bloom Finance: 76% of parents and grandparents who provide financial help to their children or grandchildren said it now affects their retirement savings. This is an 11-point jump from last year’s 65%.
– Canada’s population growth is decelerating, but it’s nowhere near slow. The country added an estimated 47,098 people (+0.11% q/q) in Q3 2025, pushing the population to a record 41.65 million.
– Canadians continue to move abroad in record volumes. There were an estimated 120,000 emigrants in the 12 months ending Q2 2025, representing a 3% increase from the previous year. Excluding a break in 2020-2021, the volume of Canadians moving abroad has trended higher.
– Canada’s economy is poised for a weak recovery in the second half of 2025. GDP will grow at a 0.5% annualized pace in Q3, according to a Bloomberg survey of economists. That’s up from the 0.1% expected in last month’s survey, and follows a 1.6% contraction in the second quarter.
– Statistics Canada: Economy posted its first monthly GDP growth in four months. Gross domestic product rose 0.2% in July, led by a 0.6% rebound in goods-producing industries after a prolonged slump.
– Royal LePage survey: 53% of respondents plan to put at least 20% down on their purchase, while 39% will not. Most are planning to wait another 12 to 24 months before committing. 41% of first-time buyers will receive financial assistance from family or friends, while 51% will not.
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.
