November 4th, 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:
– Statistics Canada: Total household debt rose 0.48% (+$14.98B) to $3.13T in August, up 4.45% (+$133.06B) annually. Remains dominated by mortgages; rose 0.50% (+$11.49B) to $2.33T – up 4.75% (+$105.60B). Mortgage debt now accounts for 74.5% of household credit – highest on record.
– Statistics Canada: Annual rate of inflation jumped to 2.4% last month. Rose thanks to a bump in food prices and slower price declines at the pump. September’s reading marks a higher increase than economists had expected, with analysts on average having predicted a 2.2% climb.
– Zumper’s National Rent Index: Median one-bedroom rent edged up just 0.1% in September to $1,821, while two-bedroom units rose 0.1% to $2,258 compared to August. On an annual basis, rents fell 4.1% and 4.3%, respectively, the twelfth straight month of year-over-year declines.
– Urbanation: New condominium sales in the GTHA have fallen to their lowest level in 35 years. Just 319 new condo apartments were sold in Q3 2025, down 54% from a year earlier and 92% below the 10-year average for the period. It was the weakest third quarter since 1990.
– CREA: Home sales slipped 1.7% in September compared monthly (but up 5.2% yearly), halting a five-month run of gains. National average sale price ticked up 0.7% yearly to $676,154. New supply also slipped, with the number of newly listed properties down 0.8% monthly.
– CREA has revised its projections for the Canadian resale housing market. Now expects national home sales to fall 1.1% from 2024 levels, with 473,093 properties forecast to change hands. National average home price is also set to dip by 1.4% to $676,705 in 2025.
– TRREB: Toronto’s average condo price fell to $655,231 in September, a 4.3% annual drop. In the city’s core (416 area), the average was $681,115—down 3.8%. The 905 suburbs saw prices fall 5.4% to $606,275. These are the lowest condo prices the region has seen in at least 4 years.
– TD survey: 53% of Gen Z respondents—those born between 1997 and 2012—felt compelled to project an image of financial stability, even as they struggled behind the scenes with debt, stress, and uncertainty. 47% cited cost of living as biggest obstacle to reaching financial goals.
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.
