In recent years, condominiums in Canada have been central to the conversation about housing. As the need for more affordable housing grows, condos have often been seen as a critical part of the solution. However, 2024 has shown that the condo market, particularly in major cities like Toronto and Vancouver, has encountered significant struggles, raising questions about the future of new developments and housing availability in the country.

A Challenging Year for the Condo Market

The condo sector, once celebrated as the go-to solution for urban housing needs, has faced a dramatic downturn this year. With soaring interest rates, construction delays, and a shifting economic environment, the once-booming condo market has faltered. Experts agree that a combination of factors, such as rising borrowing costs and an oversaturation of supply, has created what many are calling a "perfect storm."

In the Greater Toronto Area (GTA), one of Canada's busiest condo markets, the year began on a particularly grim note. By January 2024, Canada had already experienced 10 interest rate hikes, which significantly impacted both the purchasing power of potential buyers and their sentiment. The new condo segment was hit especially hard, with more than 40 projects either delayed or put on hold. This number only continued to grow, reaching a staggering 76 by mid-year. The result? A market that’s quieter than ever, with fewer buyers and fewer new units coming to market.

According to Shaun Hildebrand, President of Urbanation, the situation in Toronto is dire. Condo resales have plummeted to their lowest levels since 2008, and the pre-sale market—largely driven by investors—has slowed to a crawl. “We’re on track for the slowest year in almost three decades,” Hildebrand notes, with fewer than 5,000 pre-sale condo transactions expected, a far cry from the 22,000 average sales seen in previous years.

Investor Exodus and the Pain of Pre-Sales

One of the most notable trends in 2024 is the significant pullback by investors, who were once integral to the pre-sale condo market. With interest rates rising and prices softening, many investors have simply walked away. As a result, construction projects are facing delays and cancellations, while those who are still holding on to their investments face escalating defaults and financial distress.

Real estate lawyer Mark Morris has been vocal about the challenges facing the new construction market. "People who bought condos in 2020 or 2021 are struggling to close," he says. "Defaults are up, and in certain areas, like ‘dog crate’ condos, prices have dropped significantly."

Builders are also feeling the strain. As construction costs rise and the market cools, many are unable to justify continuing new projects. This, combined with the growing financial burden imposed by municipalities in the form of development charges (DCs), means fewer new condo developments are being initiated. In Toronto, these charges were increased twice in 2024 alone, further discouraging construction.

A Coming Crisis?

The slowdown in condo development in Toronto is just one part of a larger, national issue. Across Canada, particularly in cities like Vancouver, the narrative has been largely the same. In Greater Vancouver and the Fraser Valley, the condo market has seen a consistent decline. By the end of 2024, presale transactions in the region are expected to fall 30% below the 10-year average, with fewer new projects being launched. This is a worrying trend for the housing market, especially as demand for condos continues to rise.

Garde MacDonald, Director of Advisory at MLA Canada, highlights the bleak outlook for the region: "Rents have been softening, prices have stayed flat, and the buyers who existed at the start of the year are largely the same buyers that exist today." With many investors pulling back due to changing government policies and growing bureaucracy, the future of condo construction is uncertain.

Looking Ahead: Fewer Units, Higher Prices?

The biggest concern for many in the industry is what the future holds for condo supply. Experts like Jared Menkes, Executive Vice President at Menkes, warn that the current slowdown in condo development will lead to a "crisis" in the coming years. "If we don’t start projects in 2025, there will be no new deliveries in 2028," he says, pointing out the lengthy timelines required for high-rise construction.

This supply shortage could lead to even higher prices for the condos that do come to market. With fewer new projects being initiated, there will be less inventory available, and that, in turn, could make affordability even more elusive for would-be buyers and renters.

The Bottom Line: A New Era for Condos?

The condo market’s struggles in 2024 have exposed deeper issues in Canada’s housing sector. The combination of rising interest rates, investor pullback, and municipal policy changes has created a perfect storm, stalling many new developments and pushing the market into a holding pattern.

The coming years could see a significant reduction in condo supply, particularly in major markets like Toronto and Vancouver. While this might lead to higher prices in the short term, it could also exacerbate the affordability crisis that many Canadians are already grappling with.

As the government and industry stakeholders work to address these challenges, it remains to be seen whether the condo market can recover or if it will continue its downward spiral. For now, the future of Canada’s condo market is uncertain, and all eyes are on the developers, investors, and policymakers who will ultimately shape its path forward.

Bank of Canada. It all felt like the makings of a rebound. But the lingering question remains: Are we there yet?

A Long and Uncertain Journey

Instead of a straightforward path to recovery, the Canadian real estate market has felt more like an endless road trip, complete with false starts and fleeting signs of progress. For years, the narrative of “buyers on the sidelines” has dominated industry conversations, waiting for just the right conditions to re-enter the market. But what truly drives these buyers back in? The answer seems to hinge on whether prices are moving up or down.

"Buy the Dip"

The concept of "buying the dip" has gained traction, particularly among those hoping to time the market's bottom. Yet, the adage "time in the market, not timing the market" echoes for a reason. If you aim to hit the market’s lowest point, you need to be active as prices are falling. Ironically, those waiting for the dip often realize they’ve missed it, with prices already rebounding after months of declines.

This dynamic creates an important takeaway: market participants don’t just observe the market—they shape it. Buyers submitting below-market offers during downturns essentially create the dip rather than merely benefiting from it.

Recovery or Relief Rally?

Up until recently, market data suggested no clear signs of recovery. However, September saw a surprising deviation from seasonal norms, breaking away from the usual back-to-school rush. This trend continued into November, a month traditionally marked by a slowdown, with sales and prices both rising.

According to the Canadian Real Estate Association (CREA), national home sales climbed 2.8% in November compared to October, amounting to an 18.4% increase since May. Sidelined buyers appear to be re-entering the market, spurred by lower rates and improved affordability.

Buyer Activity Heats Up

Unsurprisingly, activity remains strongest in major markets such as Greater Toronto, Metro Vancouver, Calgary, and Montreal. Smaller cities in Alberta and Ontario have also reported double-digit increases in sales. This resurgence raises the question: Is this the beginning of a sustained recovery or merely a short-term response to policy changes?

While the market looks more like pre-pandemic norms (2016-2019), it feels inflated compared to last year’s lows and subdued compared to the pandemic-era highs.

Sellers Regain the Advantage

For sellers, the market has tilted firmly in their favor. The sales-to-new-listings ratio (SNLR) rose to 59.2% in November, up from the 52%-53% range earlier this year. With new listings down 0.8% month-over-month, buyers face increasing competition for a shrinking pool of homes.

The months of inventory metric dropped to 3.7 months nationally, the lowest in over a year. A balanced market typically requires 4-6 months of inventory, underscoring the imbalance between supply and demand.

Rising Prices: Genuine Growth or Illusion?

November marked a turning point for home prices, with the National Composite MLS Home Price Index (HPI) rising 0.6% from October. The actual national average sale price also jumped 7.4% compared to November 2023. Despite these gains, the HPI remains 1.2% lower year-over-year, signaling that the market hasn’t fully recovered from the downturn caused by earlier rate hikes.

This fragile recovery remains susceptible to external shocks, including future rate adjustments, economic policy changes, and broader economic uncertainties.

Supply Challenges Persist

By November’s end, Canada had just over 160,000 properties listed for sale, 8.9% more than a year ago but still below the long-term average of 178,000. While some interpret this as a structural supply deficiency, others see potential room for growth.

Notably, active listings have trended upward since the rate-hiking cycle began, indicating that supply is gradually improving but still falling short of meeting demand.

Spring Market: A Crucial Test

The upcoming spring market will likely play a pivotal role in determining the direction of Canadian real estate. Traditionally the busiest season, it often sets the tone for the year. However, potential headwinds—including recession fears, declining population growth, and rising unemployment—could dampen buyer enthusiasm. These challenges may counteract the optimism generated by lower borrowing costs.

Final Thoughts

Lower interest rates often serve as a temporary boost to the housing market, but they fail to address the underlying disparity between incomes and house prices. This leaves many buyers, particularly first-time buyers, struggling to compete. While rising home values benefit sellers and existing homeowners, they further widen the gap between the haves and have-nots.

The road to recovery for Canadian real estate remains uncertain. While recent momentum provides hope, it’s clear that the journey is far from over. The market must navigate a delicate balance of economic pressures, policy shifts, and buyer sentiment to sustain meaningful growth.

As 2024 winds down, the Canadian housing market is showing signs of resilience, with home sales continuing to climb. November 2024 saw a notable 2.8% increase in home sales compared to October, extending the growth that began in the previous month. This uptick reflects a broader recovery, as national home sales are now 18.4% higher than they were back in May, just before interest rate cuts started to impact the market.

Key Factors Driving the Market Rebound

The November surge in sales was particularly noticeable in major urban centres, including Greater Vancouver, Calgary, Greater Toronto, and Montreal. Smaller cities in Alberta and Ontario also saw impressive double-digit increases in home sales. Shaun Cathcart, Senior Economist at the Canadian Real Estate Association (CREA), attributes the rise to a combination of factors, including lower borrowing costs and increased inventory, which have encouraged more buyers to enter the market.

"Not only were sales up again, but with market conditions tightening, prices began to rise at the national level for the first time in over a year and a half," said Cathcart. He noted that while it's typical to see a slowdown in the market before spring, the Bank of Canada's recent interest rate cut and the loosening of mortgage rules could lead to a more active winter market than usual.

Home Prices See Modest Increase

In addition to rising sales, home prices are also showing signs of upward movement. The National Composite MLS® Home Price Index (HPI) rose by 0.6% in November from October—the largest month-over-month increase since July 2024. This marks a significant shift, as prices had been largely stagnant or falling for much of the past year.

However, despite the monthly gains, the HPI remains down 1.2% compared to November 2023, highlighting ongoing year-over-year price pressures. Meanwhile, the actual national average sale price stood at $694,411 in November 2024, which represents a 7.4% increase from the previous year.

November 2024 Highlights

Here’s a closer look at some of the key statistics for the Canadian housing market in November:

• National home sales rose 2.8% month-over-month.

• Home sales were up 26% year-over-year when compared to November 2023.

• New listings declined slightly by 0.5% from October to November.

• National MLS® Home Price Index (HPI) increased by 0.6%, though it was still down 1.2% year-over-year.

• The national average sale price increased by 7.4% year-over-year, reaching $694,411.

• Sales-to-new listings ratio increased to 59.2%, up from 57.3% in October, indicating tighter market conditions.

With fewer new listings in November—down 0.5% from October—the sales-to-new listings ratio rose to 59.2%, moving closer to balanced market conditions. This figure is above the long-term average of 55%, which suggests that demand is outpacing supply in some regions.

What Does This Mean for Buyers and Sellers?

For prospective homebuyers, these trends indicate that the market is becoming more competitive, particularly in urban centres and regions with tighter inventory. With fewer properties available for sale, buyers may need to act quickly and be prepared for potential bidding wars, especially in sought-after locations.

For sellers, this is an encouraging sign. The combination of rising home prices and lower inventory means that it may be a good time to list. However, it's important for sellers to work closely with a local REALTOR® to ensure their property is priced appropriately for the current market conditions.

Looking Ahead: A More Active Winter Market?

As we head into 2025, the outlook for the Canadian real estate market remains cautiously optimistic. The Bank of Canada's recent interest rate cut has helped reduce borrowing costs, making homeownership more accessible to some buyers. Additionally, changes to mortgage rules could further fuel market activity in the coming months, potentially leading to a busier-than-usual winter.

For anyone considering buying or selling a home, consulting with a REALTOR® is always the first step to understand the local market dynamics and get expert advice tailored to your specific needs.

Final Thoughts

While Canadian home prices are still slightly below their levels from last year, the market is showing clear signs of recovery. Increased home sales, tightening inventory, and rising prices suggest that the housing market is starting to rebound after a period of uncertainty. Whether you're looking to buy or sell, staying informed and working with a trusted real estate professional can help you navigate this evolving market.

On December 15, 2024, new federal mortgage rules came into effect in Canada, aiming to make homeownership more accessible for first-time buyers and those purchasing newly built homes. These changes are poised to open up new opportunities in the housing market, according to real estate experts. Here’s a breakdown of the updates and how they might impact buyers and homeowners.

Key Changes to the Mortgage Rules

1. Increased Price Cap for Insured Mortgages

For the first time since 2012, the price cap for mortgages insured against default has risen from $1 million to $1.5 million. This adjustment allows more buyers to qualify for mortgages with smaller down payments. Previously, homes priced over $1 million required a minimum 20% down payment. Now, those purchasing homes below $1.5 million may be eligible to put down as little as 5%.

2. Extended Mortgage Terms for First-Time Buyers

First-time buyers and purchasers of newly built homes with insured mortgages can now opt for a 30-year amortization period instead of the 25-year limit. This change, which expands on an earlier policy implemented in August 2024, provides buyers more time to pay off their mortgage balance, potentially increasing their purchasing power.

3. Refinancing Flexibility

Homeowners with insured mortgages can now refinance up to $2 million to build additional dwelling units, such as laneway homes. This policy aims to encourage modest increases in housing density.

How These Changes Impact Homebuyers and Homeowners

The extended mortgage term is a game-changer for many first-time buyers. According to mortgage broker Mary Sialtsis, the previous 25-year limit may have kept some buyers out of the market. A longer amortization period can reduce monthly payments, making homeownership more attainable. However, it’s important to note that a longer term also means paying more interest over time unless borrowers make extra payments or switch to biweekly payment schedules to accelerate repayment.

The increase in the insured mortgage cap is particularly significant in high-cost urban areas like Toronto, where the median sale price for a single detached home is $1.23 million. For condos, the median price is $615,250, according to the Canadian Real Estate Board. By raising the cap, the government aims to alleviate the pressure on homes priced below $1 million, which previously faced intense competition due to down payment requirements.

Concerns About Home Price Inflation

While these updates bring hope to many aspiring homeowners, some experts caution about potential downsides. John Pasalis, president of Realosophy, warns that increasing household borrowing power could contribute to higher home prices. “This is really just a short-term policy fix that’s going to drive home prices higher,” he explained.

Navigating the New Rules

If you’re a prospective homebuyer or homeowner curious about how these changes might affect you, consulting a mortgage professional is a wise first step. “Your hopes may not be as impossible as you think,” Sialtsis said. By understanding the new rules and exploring financing options, you can make informed decisions about entering or moving within the housing market.

Final Thoughts

Canada’s new mortgage rules mark a significant shift aimed at improving accessibility for buyers and encouraging modest housing growth. While they provide new opportunities, it’s essential to consider the long-term financial implications and potential market impacts. Whether you’re a first-time buyer or a seasoned homeowner, staying informed is key to navigating these changes effectively. Consider consulting with mortgage brokers, attending housing seminars, or exploring government resources such as the Canada Mortgage and Housing Corporation (CMHC) website to stay up-to-date on policies and programs.

Yesterday, the Bank of Canada announced a significant monetary policy shift, lowering the overnight interest rate by 50 basis points to 3.25%. This marks the second consecutive rate cut of this size and the fifth consecutive reduction overall, signalling an aggressive approach amidst an uncertain economic landscape.

This decision, following October’s drop from 4.25% to 3.75%, has broad implications for the Canadian economy, particularly in areas like real estate, employment, and the cost of living.

A Double-Cut Amidst Economic Uncertainty

The latest rate cut comes as inflation sits at the Bank’s target of 2%, a stability welcomed by many. However, other economic indicators paint a more challenging picture. The unemployment rate has climbed to 6.8%, its highest level since January 2017, excluding the COVID-19 pandemic years. Additionally, the Canadian dollar continues to weaken, now standing at $0.71 against the US dollar, raising concerns about the cost of imported goods.

Economists remain divided on the Bank’s decision. While some, like Nathan Janzen of RBC Economics, argue that lower rates are necessary to support the economy, others, such as Benjamin Reitzes of the Bank of Montreal, warn that aggressive cuts could exacerbate inflationary pressures on key imports like food.

Bank of Canada Governor Tiff Macklem acknowledged these concerns, emphasizing a balanced approach. “A lower Canadian dollar makes Canadian exports more competitive in the U.S. but also increases the cost of imported goods, which we must account for in monetary policy,” Macklem said.

Impacts on the Housing Market

For prospective homeowners, the rate cut is a potential game-changer. Lower rates reduce monthly mortgage payments, making homeownership more accessible. For instance, the recent cut translates to approximately $28 in monthly savings per $100,000 of a mortgage.

This monetary shift comes at a time when the housing market is already showing signs of recovery. In Toronto, November 2024 saw 5,875 home sales — a 40.1% increase year-over-year. Nationally, October recorded 174,458 property sales, marking a 30% increase from the same period last year.

However, this increased activity could also lead to intensified competition among buyers, particularly as new federal housing policies take effect later this week. Changes such as raising the insured mortgage cap from $1 million to $1.5 million could bring more first-time buyers into the market, further driving demand.

Victor Tran, a mortgage and real estate expert at RATESDOTCA, anticipates a surge in buyers opting for variable-rate mortgages to capitalise on falling rates. “While many markets currently favour buyers, this rate cut could be the tipping point that heats up competition,” he says.

Navigating the Challenges Ahead

Despite the positive implications for housing affordability, there are broader economic challenges to address. A weak Canadian dollar and rising unemployment remain critical concerns, highlighting the need for a cautious and strategic approach.

The Bank of Canada’s next announcement on January 29, 2025, will provide further insights into its monetary policy direction. Until then, Canadians are advised to monitor market trends closely, especially those considering entering the real estate market.

On December 11, 2024, the Bank of Canada announced a reduction in its target for the overnight rate by 50 basis points, bringing it down to 3.25%. The Bank Rate is now set at 3.75%, and the deposit rate remains at 3.25%. This move is part of the Bank's ongoing effort to normalise its balance sheet following the pandemic's economic disruptions.

Economic Outlook: A Mixed Picture

The global economy is largely evolving as expected, with some notable differences across regions. In the United States, economic strength continues, fuelled by robust consumer spending and a healthy labour market. Inflation in the US has remained steady, with certain price pressures persisting. Meanwhile, the euro area is seeing signs of slower growth, and while China’s growth is being supported by strong exports and policy actions, domestic consumer spending remains subdued.

For Canada, the outlook is more tempered. The economy grew by just 1% in the third quarter, which is below the Bank's previous expectations. The fourth quarter also looks weaker than initially forecasted. Business investment, exports, and inventories were some of the major factors holding back growth. However, consumer spending and housing activity have picked up, suggesting that lower interest rates are starting to stimulate household spending. The unemployment rate in Canada rose to 6.8% in November, as employment growth lagged behind the growth in the labour force.

Government Measures Affecting Inflation and Growth

Several new policy measures are expected to impact both inflation and economic growth in the short term. The Canadian government has announced a reduction in immigration targets, which will likely result in lower GDP growth for 2025 than the Bank’s previous forecast. While this could dampen both demand and supply, the effects on inflation are expected to be muted. Additional federal and provincial measures, such as the temporary suspension of the GST on certain consumer goods, one-time payments to individuals, and changes to mortgage rules, will also influence demand and inflation trends.

The possibility of new tariffs on Canadian exports to the US, under the incoming administration, adds another layer of uncertainty to the economic outlook.

Inflation and Interest Rate Decisions

Consumer Price Index (CPI) inflation in Canada has remained around 2% since the summer, and the Bank expects it to stay close to this target over the next few years. This is a positive sign, as the Bank of Canada's primary goal is to keep inflation close to its 2% target. Despite some moderate upward pressure from housing costs and downward pressure from goods prices, inflation is expected to remain stable in the near term.

In light of the softer-than-expected growth and the ongoing inflationary pressures, the Bank decided to reduce the policy rate by 50 basis points. This action aims to support economic growth and help keep inflation within the target range of 1-3%. The Bank has already significantly reduced the policy rate since June and will continue to assess the need for further rate cuts on a case-by-case basis.

Looking Ahead

The Bank of Canada remains committed to maintaining price stability and fostering sustainable growth. The next scheduled rate announcement will take place on January 29, 2025, with a full economic outlook and inflation forecast expected at that time.

As always, the Bank’s decisions will be guided by incoming data and its ongoing assessment of the economic landscape, focusing on the long-term goal of keeping inflation near its target while supporting the broader Canadian economy.

Why This Competition Could Benefit Canadians

For Canadian homeowners, particularly those renewing their mortgages, this heightened competition could lead to significant advantages:

1. Lower Mortgage Rates: Banks are already offering discounted rates on renewals, with automatic renewal letters showcasing rates below posted figures. This trend is likely to intensify as competition heats up.

2. More Financial Awareness: Borrowers are increasingly scrutinizing their options. Armed with knowledge, homeowners may find themselves in a stronger position to negotiate favourable terms.

3. Longer-Term Security: With banks aiming to lock in customers ahead of open banking, long-term fixed-rate mortgages could become more attractive and affordable.

Which Banks Are Positioned to Win?

RBC's report suggests that banks with large mortgage books and strong deposit bases are best equipped to thrive in this environment. However, others face potential challenges:

• Winners: Banks with robust financial reserves and strategic renewal plans could secure market share while maintaining profitability.

• At Risk: BMO, Scotiabank, and CIBC might face greater challenges, including losing customers and grappling with thinner mortgage spreads.

What Should Borrowers Do?

With the market shifting, Canadians can take proactive steps to benefit from the upcoming mortgage competition:

• Shop Around: Don’t settle for the first renewal offer. Compare rates across lenders to find the best deal.

• Leverage Brokers: Mortgage brokers are likely to be more assertive in this competitive climate, which could work in borrowers’ favour.

• Consider Fixed-Term Rates: As banks aim to secure longer commitments, fixed-term mortgages might come with competitive rates and added stability.

The Bottom Line

For Canadians, the potential "mortgage war" represents a golden opportunity to secure better rates and terms. With banks jostling for position and innovation like open banking on the horizon, the power dynamics in the mortgage market are shifting. Whether you're renewing your mortgage or exploring new options, staying informed and proactive could pay off in a big way.

The holidays often slow down real estate markets, making it seem like December is not the ideal time to buy or sell a home. However, despite the colder weather and the festive distractions, there are compelling reasons why December could be the perfect month to make your move in the real estate world.

Why December is a Good Time to Buy or Sell

According to Charles Jaque, president and CEO of RDS Brokerage, December offers sellers the opportunity to stand out. With fewer listings and less competition, homes have a better chance of catching the attention of serious buyers. “December tends to be the lowest month for new listings in Toronto, and this trend is seen nationwide,” Jaque explains.

Adrienne Lake, managing broker of Corcoran Horizon Realty, also points out that the lower inventory creates an environment where homes can shine more brightly against the competition. This is especially true if you're selling a property that has no direct competitors in the area, such as a unique condo or a one-of-a-kind home.

However, Jaque advises sellers to manage their expectations, as December pricing is often lower than other months. His research shows that prices in the Greater Toronto Area are among the lowest in December, making it crucial to review market trends and comparables before listing.

Why This December Could Be Busier Than Usual

This year, December’s real estate market is shaping up to be busier than usual due to upcoming changes in federal mortgage rules, set to take effect on December 15. Many buyers and sellers are trying to navigate the market before these changes take place. In fact, November saw an uptick in sales in major cities like Toronto and Vancouver, and many Realtors are noticing a late-season rush of listings as sellers prepare for the spring market while buyers seek to take advantage of favourable conditions.

Benefits for Buyers

For buyers, the holiday season provides an opportunity for a smoother, less competitive home-buying experience. With fewer buyers in the market, there’s a reduced likelihood of bidding wars. Plus, homes listed during this time tend to be sold by motivated sellers, making it easier for buyers to negotiate deals.

Jaque notes that many sellers who list in December must do so for personal reasons, which can create a great chance for buyers to secure a property at a competitive price. Additionally, interest rates are lower and expected to decrease further before June, which could make this a prime time to purchase before rates rise again.

How to Stand Out and Boost Your Performance During the Holidays

1. Decorate, but Don’t Overdo It
If you’re listing a property, keep the holiday decorations tasteful and welcoming. While cozying up a space with some holiday cheer can help, avoid overwhelming potential buyers with overly festive displays that might alienate those who don’t celebrate. The key is to create an inviting atmosphere that appeals to a wide range of people.

2. Client Appreciation Events
Host small client events like a holiday cocktail hour or brunch to stay connected with past clients and build relationships with potential leads. This can be a great way to keep your name top-of-mind while spreading some holiday cheer.

3. Unique Open Houses
Get creative with your open houses by adding festive touches like a visit from Santa Claus, photos with pets, or holiday-themed treats like hot chocolate and cookies. A branded event that stands out from the usual offerings will draw in more visitors.

4. Collaborate and Engage with the Community
Partner with other agents in your area for joint open houses or community events. From toy drives to holiday competitions, showing that you care about your local community can help set your listings apart. Jaque suggests activities like gingerbread house-making contests or charity initiatives to build relationships and strengthen your ties with potential clients.

5. Personal Touches Go a Long Way
Reach out to your clients with personal holiday cards or small gifts to show you care. This simple gesture can keep the lines of communication open and remind them that you are thinking of them. It’s not just about sales; it’s about nurturing long-term relationships.

Consistency Is Key: Think Year-Round

Jaque emphasizes that success in real estate is not about short bursts of activity around the holidays but about year-round consistency. By staying engaged with your clients throughout the year, whether through personalized messages or regular check-ins, you’ll build a stronger foundation for success.

Use Technology to Stay Organized
Both Jaque and Lake agree that successful agents use systems to stay organized and keep track of relationships with clients. Using CRM software and making sure to touch base regularly is crucial for building a sustainable business. While the holiday season is a great time for extra marketing, these efforts should be part of a broader, ongoing strategy.

Take Advantage of the Quiet Market

The quieter December market offers a unique opportunity for agents to put in the work that many others might neglect. By taking advantage of the slower season to establish stronger relationships with clients, plan creative marketing strategies, and stay consistent with outreach, you can set yourself up for greater success when the market picks up in the new year.

Whether you're buying, selling, or working as an agent, December might just be the best-kept secret in real estate. With a little preparation and creativity, you can make the most of the holiday season and position yourself for success in 2025.

As 2025 draws closer, over 1 million Canadian homeowners are facing a significant financial change—mortgage renewal. If you’re among the 1.2 million Canadians with a mortgage set to renew next year, this could mean higher payments and added financial pressure.

According to a recent report by the Canada Mortgage and Housing Corporation (CMHC), the majority of these mortgages were secured during a time when interest rates were at or below 1%. Now, with interest rates significantly higher, many homeowners are about to face mortgage renewals that could impact their finances.

What’s Happening with Interest Rates?

The Bank of Canada (BoC) has made several adjustments to its key interest rate throughout 2024, dropping it four times in an effort to manage inflation, which peaked at 8.1% in June 2022. After reducing the rate to 3.75%, many mortgage holders will soon be renewing their loans at rates much higher than they were initially accustomed to.

While the current rates are lower than the 5% level seen for much of 2023, they still pale in comparison to the historically low rates many Canadians locked in during the pandemic, which were as low as 0.25%.

The Impact on Homeowners

For over 1 million homeowners, this means a major increase in monthly mortgage payments. Homeowners who initially secured low-interest mortgages may now face significantly higher rates, which could increase their payments and place financial strain on household budgets.

The CMHC report also highlighted a slight increase in mortgage delinquency rates, with 0.19% of mortgages being over 90 days past due in Q2 of 2024, up from 0.14% in 2022. This may be an early indicator that many Canadians are struggling with the increased cost of borrowing, and the CMHC anticipates more delinquency in the future as mortgages are renewed at higher rates.

A Broader Economic Concern

The CMHC warns that the upcoming wave of mortgage renewals in 2025 and 2026, combined with higher interest rates, could put a strain on the Canadian economy. The national housing agency also noted that mortgage debt has been growing faster than inflation, leaving many borrowers vulnerable to financial pressure.

The situation isn’t just about higher monthly payments—it’s a broader issue that could exacerbate financial strain on Canadian families, especially if other debts like auto loans, credit cards, and lines of credit are also increasing in delinquency.

Ontario Homeowners: How Will You Be Affected?

If your Ontario home’s mortgage is up for renewal in 2025, it’s crucial to start planning ahead. The financial landscape is much different than when you first secured your loan, and you may be facing a steep increase in payments.

Do you expect to be able to handle the higher costs, or will the change be a financial challenge? How will your household budget be impacted by the higher mortgage payments? Will you need to explore refinancing options, or perhaps make cuts elsewhere in your expenses?

Your experience matters, and we want to hear from you. Share your story with us, and let’s shed light on the challenges faced by homeowners as they navigate the upcoming changes in mortgage rates.

As Canada moves into 2025, homeowners facing mortgage renewals must prepare for potentially higher payments and the financial implications that come with it. Being proactive in understanding your new rate and how it could impact your monthly finances is essential in managing the financial stress of mortgage renewal.

If you're shopping for a mortgage in Canada, you're likely searching for the best possible rates. After all, a lower mortgage rate can save you thousands of dollars over the life of your loan. But with mortgage rates constantly changing, how can you find the lowest rates and ensure you're getting the best deal?

This guide provides an up-to-date snapshot of Canada’s best mortgage rates, along with helpful tips for qualifying for the lowest rates available.

Why Mortgage Rates Matter

When you're buying a home, the interest rate on your mortgage plays a huge role in how much you’ll pay over time. A lower rate means lower monthly payments, which can free up your budget for other needs. And, if you’re borrowing a large sum, the savings can be significant over the long term.

How to Find the Best Mortgage Rates in Canada

The Canadian mortgage market is always evolving, with rates changing frequently. To help you navigate this shifting landscape, we’ve compiled a list of the best national mortgage rates available today. We also update this information daily, so bookmark this page to stay on top of the latest mortgage rate trends.

But simply finding the lowest rate isn’t always enough. There are a few other factors that will help you lock in the best possible deal.

How to Qualify for the Lowest Mortgage Rates

To get the best mortgage rate, it’s important to understand the requirements that come with qualifying for these low rates.

1. Insurance: Most of the lowest rates require mortgage insurance. This may seem counterintuitive—after all, why would putting less money down lead to a lower rate? The answer is simple: mortgage insurance acts as a safety net for lenders, which makes them more willing to offer cheaper financing. Typically, mortgages with less than a 20% down payment require insurance by law.

   Tip: If you switch lenders at the end of your mortgage term and don't increase your loan or amortization, ensure the new lender keeps your insurance active. This can help you maintain lower rates in the future.

2. Insurable Mortgages: If you can put down at least 20% of the home’s value, you may qualify for an "insurable" mortgage. These loans often come with lower rates—sometimes 10-25 basis points (bps) lower than uninsured loans. For example, a 10 bps savings could save you over $470 over five years on every $100,000 you borrow.

Key Factors for Qualifying for the Best Rates

Beyond mortgage insurance, there are a few key qualifications that lenders look for when offering the best prime rates:

• Credit Score: A good credit score (usually 720 or higher) is essential to getting the lowest rates. While some lenders may accept lower scores, this is a general benchmark.

• No Recent Missed Payments: Lenders will look at your credit history to ensure there are no recent missed payments or derogatory marks.

• Income: Lenders want to know that you can afford your mortgage. This means having a stable income (such as a job letter and pay stub) or tax documentation if you're self-employed.

• Debt-to-Income Ratio: Your monthly housing costs (including mortgage payments, property taxes, and heating costs) should be no more than 39% of your gross income. All monthly debt payments (including loans and credit cards) should be under 44% of your gross income.

• Marketable Property: The property you’re buying needs to be easily sellable if needed. Some lenders may not offer the best rates for rural or unique properties that are harder to resell.

Additional Tips for Saving on Your Mortgage

1. Switching Lenders: If your mortgage term is coming to an end, consider switching lenders. Many lenders offer competitive rates for new customers, which can be a great way to save. Be sure to review the terms carefully and confirm you’re not paying higher fees in other areas.

2. Rate Holds: Some of the best rates require you to close your mortgage within a specific time frame (often within 30 days). Make sure to check with your lender on their rate-hold policies.

3. Amortization Period: Lenders tend to offer better rates for shorter amortization periods. If you can afford higher monthly payments, choosing a shorter amortization period can reduce the total cost of your mortgage over time.

The Bottom Line

Finding the best mortgage rate in Canada isn’t just about getting the lowest advertised rate. To truly maximize your savings, it’s important to consider factors like insurance, your credit score, income, and the type of property you’re buying. By keeping these factors in mind and negotiating with lenders, you can secure the lowest possible rate and save money in the long term.