The Canadian real estate market is facing significant transitions in 2025, with the Bank of Canada's policy rate at 3.25% and 60% of homeowners facing mortgage renewals over the next two years. National Bank forecasts potential rate cuts followed by hikes in 2026, while strong December job numbers cast doubt on anticipated rate cuts.
- Capital gains tax changes are creating uncertainty, with the CRA moving forward with a 67% inclusion rate despite pending parliamentary approval.
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Demographic shifts show seniors are now more likely to have mortgages than young adults, with 49% of mortgage debt held by those aged 45-64
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Variable-rate mortgages are expected to make a comeback in 2025 as interest rates trend downward, though economic indicators and potential U.S. tariffs could impact the market