Canada’s Housing Market: What You Need to Know Right Now

Are you thinking about buying a home but feeling unsure because of what’s happening in the market? You’re not alone. Let’s break down what’s going on in simple terms and how it might affect your plans.

New Plan to Build More Homes
Prime Minister Mark Carney just launched a big $25 billion plan called Build Canada Homes. The goal? Build nearly 500,000 new homes a year by working with private companies. That sounds great, but there’s a catch: the homes might not be affordable for everyone because there are no rules to keep prices down.

Interest Rates Still High
The Bank of Canada kept its key interest rate at 2.75% in June 2025. Fixed mortgage rates are still over 4%, which is still below the 30 year average. It’s important to know that the key interest rate is NOT the rate you can get on your mortgage. The Bank of Canada’s rate mostly affects variable rate mortgages. Fixed mortgage rates are more influenced by bond markets.

In places like Toronto, home sales dropped by over 23%, and even more for condos. People are holding off, waiting for better rates.

Immigration Changes Are Slowing Down Demand
Canada also decided to welcome fewer new permanent residents in 2025 to ease pressure on the housing market. But this comes with a new challenge - not enough workers to build the homes we need. This could lead to higher construction costs and slower building.

What This Means for You
Right now, there’s more supply on the market, so buyers might find short-term deals. But fewer new homes being built could push prices back up later. Rent is also coming down in some cities like Toronto -good news if you’re still deciding whether to rent or buy.

Worried About Getting a Mortgage?
With banks tightening their rules, now is the time to work with a mortgage broker who has access to many different lenders. This gives you more choice and increases your chances of finding a mortgage that fits your situation - especially if your bank says no. A broker can shop around for you and help you understand all your options.

Bottom Line: The housing market is shifting. If you’re thinking about buying, now is a good time to explore your options and plan ahead.

Let’s talk about how we can make homeownership work for you, even in this changing market. Book a call HERE.