November 19th, 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:
– Office of the Superintendent of Bankruptcy: There were 36,256 filings recorded in Q3 marking the third-highest quarterly volume since 1987, and the highest since 2009. Data revealed that consumer insolvencies were not only up 4.8% yearly but also 3.3% higher than previous quarter.
– Canada Pulse Insights: Among 38% of respondents who aren’t homeowners, only 25% believed they would own a home. Greatest obstacle to homeownership for those polled was high prices of homes and condos, at 80%, while 20% said saving right amount for down payment was their obstacle.
– Ontario is lowering projections for new home construction levels in its fall economic statement. In the spring budget, the province expected to see 71,800 homes built this year — already far off the pace needed to reach 1.5 million, but now it projects an even lower 64,300.
– Urbanation: Asking rents in Canada were down 2.2% in October from a year earlier to an average of $2,105, marking the 13th straight month of annual declines. Average asks are still 6.2% higher than three years ago and 14% above pre-pandemic levels in October 2019.
– Statistics Canada: Labour market delivered another surprise in October, adding 67,000 jobs and pushing unemployment rate down to 6.9%. Marked second consecutive month of robust employment growth, offsetting losses seen during summer and suggesting that job market is stabilizing.
– TRREB: Home sales totalled 6,138 in October, down 9.5% annually. New listings totalled 16,069, up 2.7%. MLS Home Price Index Composite Benchmark fell 5%. Average selling price of $1,054,372 was down 7.2%. Month-over-month, the average price was down 1.4% from September.
– Canada’s real gross domestic product fell 0.3% in August, well below economists’ expectations for no change. The decline erased most of July’s 0.3% rebound, Statistics Canada noted.
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.
