Interest Rate
The Bank of Canada dropped the key interest rate by 25 points to 3.0% (bankofcanada.ca). This is the sixth consecutive drop since it was 5.0% in April 2024. The next rate announcement will be March 12, 2025.
Although rates have been dropping since April 2024, analysts expect to see more mortgage delinquencies this year. The Canadian Mortgage and Housing Corporation (CMHC) released a report stating that 1.2 million Canadians will need to renew their mortgage this year. At least 85% of these mortgages were initiated when the Bank of Canada’s rate was at or below 1.0% (cp24.com/news). This means many Canadians renewing their mortgages in 2025 will face costs significantly higher than what they were previously paying. This may result in motivated sales as people look to get out of their mortgage as their costs increase beyond their affordability.
Market Trends
Prices have now been relatively stable for a couple years, while the average days to sell a property has gone up in 2025 vs 2023. This is mostly welcomed news for us! It’s a lot easier to make decisions in a stable, predictable market. The average days on market is now 1-2 months across all regions - if you’re planning to sell, make sure you give yourself sufficient time.
Useful Resources – House Sigma
I’ve noticed many clients don’t use this readily available free website when looking at listings. This is my go-to resource that I recommend to everyone. Whether you’re looking for sold prices in a neighbourhood, active listings, rental listings – House Sigma is the best public website I’ve come across to access real estate listings information in Ontario.
Check it out here: housesigma.com
Are there any apps/websites you use for information related to real estate? Please let me know! If you find it useful, other people probably will too!
Investing in a Secondary Unit?
For anyone considering building a secondary unit to rent out in their primary residence. The government recently announced two incentives for you!
- An $80,000 Loan at 2% interest over a 15 year term to help convert an unused basement into a rental apartment, or a garage into a laneway home. This loan was previously available for $40,000.
- Introducing the ability to refinance with an insured mortgage for up to 90% of the post-reno value of the home, up to $2 million max, for a max term of 30 years.
Both incentives make it easier to finance the renovation. The catch is that it needs to be at your primary residence, so this cannot be used for investment properties. Both incentives are available as of Jan 2025.
Here is some more information: canada.ca/finance/news
Current Listings
Check out our latest listing in Oakville!
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