December 23rd, 2025 Mortgage Industry Update
The Bank of Canada announced on December 10th that its overnight rate will remain at 2.25%. The Bank expects final domestic demand will grow in Q4, but with an anticipated decline in net exports. Overall growth is forecast to pick up in 2026, although uncertainty remains high. The prime rate remains 4.45%.
Additionally this week:
– Statistics Canada: National population at 41.58M as of October 1, down roughly 76,000 people, or 0.2%, from July 1. The drop followed almost a year of flat growth after record expansion of 2022-23, when temporary residents helped push the population up by 1.3M in a single year.
– CREA: National home sales (33,895) down 0.6% monthly, 10.7% annually, in November. MLS HPI down by 0.4% monthly. National average home prices fell by 2% to $682,219. Number of properties for sale jumped by 8.5% compared with the same time last year, to 173,000.
– CREA: National home sales ticked 0.6% lower last month, with the MLS HPI slipping by 0.4% monthly. National average home prices fell by 2% to $682,219. The number of properties for sale across the country jumped by 8.5% compared with the same time last year, to 173,000.
– Statistics Canada: Inflation was unchanged in Canada last month, holding steady at an annual pace of 2.2% as core measures saw a welcome cooldown. Came in lower than economists had expected for the month as a slowdown in services price growth cancelled out higher goods costs.
– Statistics Canada: Total net worth of Canadian households grew to $18.4 trillion in Q3. Rose at the fastest pace since the start of 2024. Was driven by a $532.4 billion increase in the value of household financial assets, the largest dollar value gain in data going back to 1990.
– CMHC: Average monthly rate for a two-bedroom, purpose-built rental unit was $1,550, an increase of 5.1% compared to last year. Vacancy rates rose in almost every major city with the national purpose-built rental vacancy rate increasing to 3.1%, an increase from 2.2% in 2024.
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.
