Ontario Mortgage Update 2025

Mortgage Rate Trends

The Bank of Canada has implemented consecutive interest rate cuts, with the latest on December 11, 2024, reducing the policy rate to 3.25%. These reductions aim to stimulate economic growth and improve housing affordability. The next rate announcement is scheduled for January 29, 2025, with potential further cuts anticipated. (Bank of Canada, 2024).

New Mortgage Rules for Homeowners

Effective January 15, 2025, the federal government has introduced changes to mortgage insurance rules to encourage the addition of secondary suites:

- Insured Mortgage Refinancing for Secondary Suites: Homeowners can now access insured mortgage refinancing to add secondary units, such as basement apartments, to their properties. This initiative supports housing densification and provides additional income opportunities for homeowners. (Government of Canada, 2024).

Real Estate Market Forecasts

Analysts project a rebound in Ontario's housing market for 2025:

- Sales Activity: The Canadian Real Estate Association (CREA) forecasts a 6.6% increase in national home sales, with Ontario contributing significantly to this growth. (CREA, 2024).

- Home Prices: Regions like Simcoe County are expected to see a 10% rise in average residential sale prices, while areas such as Toronto may experience more modest increases. (SOSCIP, 2024).

Implications for Buyers and Sellers

- Buyers: Lower interest rates and new mortgage rules enhance purchasing power, making it an opportune time to enter the market.
- Sellers: Increased buyer activity and favorable market conditions may lead to higher demand and competitive offers for properties.

Stay Informed

The real estate market is dynamic, with ongoing changes that can impact your decisions. As your dedicated realtor, I'm here to provide personalized guidance tailored to your unique circumstances. Feel free to reach out to discuss how these developments may affect your real estate goals.

💬 Contact me today to discuss how these updates can help you achieve your real estate goals in 2025.


References

Bank of Canada. (2024). Monetary policy interest rate announcement. Retrieved from https://www.bankofcanada.ca/core-functions/monetary-policy/key-interest-rate/
Canadian Real Estate Association (CREA). (2024). Housing market forecasts. Retrieved from https://www.crea.ca/housing-market-stats/canadian-housing-market-stats/quarterly-forecasts/
Government of Canada. (2024). Mortgage insurance rule changes to enable homeowners to add secondary suites. Retrieved from https://www.canada.ca/en/department-finance/news/2024/10/mortgage-insurance-rule-changes-to-enable-homeowners-to-add-secondary-suites.html
SOSCIP. (2024). Ontario real estate in 2025: Where home prices soar. Retrieved from https://www.soscip.org/ontario-real-estate-in-2025-where-home-prices-soar/