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Mortgage News Update: What’s Happening in Canada in 2025
May 1, 2025 | Posted by: Daryl Johnson
Mortgage News Update: What’s Happening in Canada in 2025
Staying informed about the latest trends in mortgages, renovations, and housing is essential whether you’re buying, selling, or renovating your home this year. Here’s a quick update on what’s new in the Canadian mortgage landscape as of 2025.
Fixed Mortgage Rates Could Drop Further
Despite some recent fluctuations in bond yields, experts suggest that fixed mortgage rates still have room to decrease. Historically, lenders tend to raise rates quickly but are slower to lower them. This means you might see better fixed-rate mortgage deals soon-so it’s a great time to keep an eye on the market if you’re considering locking in a rate.
Variable-Rate Mortgages Are Becoming More Popular
Variable-rate mortgages are gaining traction, accounting for nearly 40% of new mortgages in January 2025. These mortgages can offer savings if interest rates stay stable or decrease, but they come with the risk of payment changes over time. If you’re comfortable with some variability in your monthly payments, a variable-rate mortgage could be a smart choice.
Renovation Costs Are Slowing Down - But Not Everywhere
Good news for homeowners planning renovations: renovation costs across Canada rose by only 0.5% in late 2024, marking the slowest increase since 2020. However, some regions like Alberta, Saskatchewan, and Regina are experiencing higher price increases due to labor shortages and material costs. Notably, projects involving solar panels and stonework saw the biggest price jumps. If you’re planning a renovation, it’s wise to budget carefully and get quotes early.
New Education Requirements for Mortgage Brokers in Ontario
To boost professionalism and consumer protection, Ontario is rolling out mandatory training for all mortgage agents and brokers. The deadline to complete this training is March 2026. Upcoming webinars on April 23 and May 7 will provide details about these new requirements. This initiative ensures mortgage professionals stay up-to-date with industry best practices.
Fighting Mortgage Fraud with AI Technology
In an exciting development, Highclere Capital has partnered with Minerva, a tech company specializing in AI-driven fraud detection. This collaboration aims to identify risky accounts and prevent fraudulent activity, helping to make Canada’s financial systems safer and more secure for everyone.
Housing Affordability Challenges Persist
Affordability remains a significant challenge, especially in major cities like Toronto and Vancouver. Household incomes in these areas fall short by $95,000 to $121,000 when trying to afford an average home. On the bright side, cities such as Edmonton and Calgary continue to offer more affordable options, with income surpluses making homeownership more attainable.
Need Help Navigating Your Mortgage or Renovation Plans?
Whether you’re buying your first home, refinancing, or planning renovations, we’re here to help you make the best decisions for your future. Contact us at ???? 519-538-6772 or send us a direct message anytime. Our team is ready to provide personalized advice tailored to your unique situation.
Stay informed, stay prepared, and let’s make 2025 a great year for your home journey!
Barry Johnson & Daryl Johnson
Mortgage Professionals – Meaford, Ontario
Mortgage Architects