Economists at Canada’s major banks don’t expect interest rates to move quite as dramatically in 2025 as they did in 2024, but they still see various sources of drama for the economy and Canadians.
Heading into 2025, economists and real estate agents believe activity is poised to remain strong amid much lower borrowing costs and more favourable rules for buyers, despite an overall challenging affordability picture.
Introduced in April 2023, the First Home Savings Account (FHSA) is a game-changer for Canadians looking to save for their first home, combining the best features of an RRSP and TFSA.
It was billed as a potential looming crisis for Canada’s economy: the wave of mortgages coming up for renewal in 2025 and 2026 at significantly higher rates than those on offer when the loan was originated. But a spate of central bank interest rate cuts and a dip in fixed rates mean that threat has faded – and renewal pain is unlikely to be a major talking point in 2025, according to market watchers.
Sweeping changes to Canada’s mortgage system, announced in September by the federal government, officially took effect on Sunday. Brokers said the changes could open the door for more Canadians to enter the housing market.
Canada’s central bank has cut interest rates for the fifth consecutive time to 3.25 per cent as the country’s economy grows at a slower rate than projected.
While the Greater Toronto Area is expected to see a bump in home prices in 2025, condo prices will not recover next year, according to a new report by Royal LePage.
Greater Toronto Area (GTA) home sales increased strongly on a year-over-year basis in November 2024. Many buyers benefitted from more affordable market conditions brought about by lower borrowing costs. New listings were also up compared to November 2023, but by a much lesser annual rate. This meant that market conditions tightened, resulting in overall average price growth compared to last year.
Canada’s banking regulator threw the mortgage industry a curve ball last week when a representative suggested there were some restrictions to a recent policy change most brokers weren’t aware of.
The Bank of Canada (BoC) is preparing for its final rate announcement of 2024 on December 11, with economists anticipating a potential further reduction in its lending rate that could impact borrowing costs for Canadians.
Ontario is exploring a proposal to allow credit reporting agencies to access Landlord and Tenant Board (LTB) orders for renters with a history of missed payments.
Various signs point to the Bank of Canada (BoC) cutting interest rates by another half percentage point in December, even if the bank hasn’t said so explicitly, CIBC economists say.
The average income needed to buy a home keeps inching down in cities across Canada, according to the latest data.
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