Mortgage Rates

Mortgage digest: More Canadians sidelined from homebuying as recession fears rise

May 22, 2025

Seventy-four per cent of respondents now say they’re concerned about a looming recession, up sharply from 60% just a month earlier. And with affordability worsening, half of Canadians now believe homeownership is even less attainable than it was a year ago.

The share of prospective buyers waiting for rates to fall remains high at 67%, but what’s notable is that 38% are holding out for rates of 3% or lower—levels well below today’s offerings.

“There is some clear underlying weakness as inventory builds and investors remain absent,” said Robert Kavcic, senior economist at BMO. “Suffice it to say, homebuyers are losing confidence and motivation, especially in areas of B.C. and Southern Ontario.”

Buying now feels out of reach for many

The survey reveals a broader shift in buyer psychology:

56% of prospective buyers believe they’ve missed their chance to buy.
66% of Millennials say their window to enter the market has closed.
Only 14% of those planning to buy expect to do so in 2025, while 24% have pushed their timelines to 2026 or later.

The burden isn’t just emotional—nearly half (43%) of homeowners say they couldn’t have purchased their home without financial help from family. Shared ownership is also gaining traction, with 45% open to buying with non-romantic partners like friends or relatives.

Confidence slipping despite tools and support

While 59% still say owning a home is one of their top life goals, two-thirds (66%) feel less confident they’ll achieve that goal compared to five years ago. The shift has been particularly sharp among younger Canadians, many of whom are also willing to consider relocating to another province—or even another country—for affordability.

At the same time, 61% of Canadians say they’re content renting, a sentiment especially common among Boomers and Gen Xers.

Exclusive discount for MPC members at U.S. Digital Mortgage conference

Mortgage Professionals Canada and National Mortgage News have once again partnered to offer MPC members an exclusive offer for DIGITAL MORTGAGE, happening September 16–17, 2025, in San Diego, CA.

Originators (banks and non-bank lenders) and mortgage broker members save up to $700 with their discount code. To receive the discount code, members should email MPC at events@mortgageproscan.ca before completing their conference registration. Canadian government employees (local or federal) are also eligible for the special discounted government rate pass.

This is a great opportunity for Canadian mortgage professionals to bring the latest insights back to your business to create a roadmap for your future-ready firm.

Those interested can register here.

Mortgage arrears ticked up in February

Canada’s national mortgage arrears rate ticked up slightly to 0.23% in February, with 11,259 mortgages three or more months past due, according to the Canadian Bankers Association.

While the increase is modest, arrears continue to trend higher from the pandemic low of 0.14%.

Saskatchewan maintained the highest arrears rate in the country at 0.58%, followed by Manitoba (0.34%) and Alberta (0.30%). The lowest arrears rates were in Quebec and British Columbia, each at 0.19%.

REALTOR.ca Appoints Three New Directors, including former Manulife COO

REALTOR.ca Canada Inc. has appointed three new members to its Board of Directors, including Sarah Miller Wright, former Chief Operating Officer at Manulife. Known for leading large-scale operations and digital transformation in financial services, Miller Wright brings significant expertise in customer experience and enterprise innovation.

Joining her on the board are Peter Lukomskyj, CEO of Radiant Health and a veteran in digital commerce and consumer tech, and Sheila Morin, Chief Marketing Officer at Coveo with a strong background in brand strategy and growth marketing.

The appointments, announced May 13, are part of REALTOR.ca’s broader strategy to strengthen governance and position the platform for continued digital and consumer-focused growth. They join an existing board chaired by REALTOR® and CPA David Oikle, alongside directors James Mabey and CREA CEO Janice Myers.

Next Steps: Mortgage industry career moves

“Next Steps” is a feature in our Mortgage Digests that highlights notable job changes and career advancements within the mortgage industry. If you have a job update to share, we welcome your submissions to keep the community in the loop.

Leighton Watson joins TMG as Associate Vice President, Broker Experience

TMG The Mortgage Group has announced the appointment of Leighton A. Watson as Associate Vice President, Broker Experience.

Watson brings extensive experience in mortgage sales leadership, agent development and business growth strategy, most recently serving as Director of Sales for Eastern Canada at Pineapple.

In his new role at TMG, he will support brokers nationwide through tailored coaching, performance accountability, and business development support.

TMG said Watson’s appointment reflects the company’s continued focus on empowering agents with full-service support and tools to help them grow their business in an increasingly competitive market.