2025 Mortgages Wrapped

2026-01-07 | 09:55:13

Wrapped Isn't Just for Spotify Anymore!  

Dear all,

You’ve probably seen 'wrapped' summaries for everything from music to workouts - so why not your mortgage?

As we head into 2026, here’s a look at the 13 biggest things that happened in 2025 and what they mean for you as a homeowner (or future homeowner).

1. Interest rates came down: The Bank of Canada made 8 rate announcements in 2025 and overall, rates dropped a full percentage point. 
   What this means for you: Lower rates = lower borrowing costs, better refinance options, and more opportunity heading into 2026.
2. Home prices cooled: Canada’s average home price dipped from ~$702K to ~$682K, but markets behaved very differently across the country.
   What this means for you: Timing and strategy matter more than ever and local insight from a mortgage professional is key.
3. Toronto's condo bubble burst: Overheated pre-construction prices corrected, and some buyers walked away from deals.
   What this means for you: Condos can still make sense, but only with the right pricing and financing strategy.
4. Rental markets eased: More supply helped slow rent increases in many cities, but how much varied a lot from province to province.
   What this means for you: Owning may be back on the table for renters, or it might be a good time to invest in a rental property.
5. Mortgage fraud is changing: While overall fraud is down, fake documents and scams are on the rise.
   What this means for you: Always read before signing documents, and think clearly before sharing information. If in doubt, ask me first to go over them with you and ensure it makes sense.
6. The Bank of Mom & Dad is more important than ever: About 70% of first-time buyers say they needed family help to buy a home.
   What this means for you: There are smart, structured ways to use family financial support, and I'm here to help guide you and your family through the process. Don't be shy about your finances, there's no judgement here!
7. US tariffs affected rates: Global uncertainty pushed bond yields and fixed rates lower, but also increased raw material and ultimately construction costs.
   What this means for you: Good news for mortgage rates, but tougher conditions for new builds. Great time to look at existing, move-in ready homes for sale as renovation costs are up. 
8. Variable rates made a comeback: As rates fell, variable options became popular again. However, the Bank of Canada has indicated rate drops are likely done for the foreseeable future.
   What this means for you: If you’re in a variable mortgage (or considering one), now is the time to review your strategy. Locking in with a fixed rate might save you money, and I'd love to run the numbers for you. 
9. Reverse mortgages gained traction: More Canadians 55+ are using home equity to fund retirement or help family.
   What this means for you: It’s an option worth understanding, especially as part of a long-term plan. 
10. Longer amortizations are back: 30-year amortizations are now available to first-time home buyers.
    What this means for you: Lower monthly payments, and more access into the housing market. However, higher interest costs over time. 
11. Federal budget changes to housing: The 2025 budget added new funding for housing in the form of GST relief for first-time buyers, elimination of the Underused Housing Tax, and measures to speed up new housing construction.
    What this means for you:<> More incentives to buy a home, and more homes to buy in the near future. 
12. Affordability is still tight: Inflation stabilized, but wages haven’t kept pace with housing costs.
    What this means for you: Your mortgage financing matters more than ever. No matter how far down the path of home ownership journey you are, reviewing the numbers is worthwhile. 
13. Renewals got easier: The stress test was removed for straight-switch, uninsured renewals (matching the criteria for insured mortgages).
    What this means for you: It’s much easier to switch lenders and get a better deal at renewal, espeically if you have a broker shop for the best rate. 

And that’s your 2025 Mortgage Wrapped!

If you’re buying, renewing, refinancing, or just want to make sure you’re set up properly for 2026 - I’m always happy to chat. Call, text, or email me anytime with questions. Even a quick conversation could make a big difference.

Happy New Year and I hope to catch up soon!

Vivian