November 11th, 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:
– Wahi: In Q3 sales of homes priced at $3M+ fell approximately 15% compared with 2024. 321 luxury properties changed hands on the resale market, down from 376 during Q3 of last year. The figure also represents 17% decline from Q2 of 2025, when 388 luxury homes were sold.
– TD Economics: Toronto’s unemployment rate climbed to 8.9% as of September 2025, marking nearly a 3.5% increase from its post-pandemic low and leaving Canada’s largest city with the fourth-highest jobless rate among the country’s 41 major urban areas.
– BILD: New home sales across GTA just had the worst September on record. Just 438 new homes sold—down 29% from last year and 80% below the 10-year average. Single-family homes made up 283 of those sales, down 16% yearly. Condo sales were even weaker: just 155 units, down 44%.
– BILD: Single-family homes fell 1.7% (-$24,900) to $1,437,400 in September, down 8.2% (-$127,600) annually. Typical condo climbed 0.4% (+$4,500) to $1,033,300 in September, and sits 0.8% (+$7,800) higher annually.
– Recent poll commissioned by Simplii Financial: One in four Canadians—rising to 34% among Gen Z—believed guidance from older generations no longer felt relevant. Nearly half of 18–34-year-olds said advice on buying a home did not apply to their circumstances.
– Ontario’s government unveiled a plan to remove the full 8% provincial portion of the harmonized sales tax (HST) for first-time buyers of newly built homes valued up to $1 million—a move OREA called “much-needed relief” for those entering the market.
– Abacus Data: More than half of Canadians (54%) say owning a home is important to them, rising to 59% among families with young kids. Only 11% say it is not important at all, underscoring that homeownership continues to serve as a key life milestone and source of stability.
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.
