Mortgage Rates

Mortgage Digest: Easing homeownership costs may be short-lived, RBC says

October 7, 2025

Canadian housing affordability has been improving steadily for a year and a half, RBC Economics says, thanks in large part to income growth, though the pace of those gains is now expected to slow.

“Robust household income growth has contributed to more than a third of the decline in RBC’s national aggregate affordability measure over the past year and a half,” the bank noted in its latest report. That measure fell to 53.6% in Q2 2025, down from a record 63.5% at the end of 2023, reflecting the combined impact of lower interest rates, softer prices and stable wages.

The steepest improvements were seen in Vancouver, Toronto and Victoria, though these cities remain Canada’s least affordable markets. By contrast, affordability in the Prairies has returned to historical norms, while Regina was the only market to see costs edge higher.

Courtesy: RBC Economics

RBC warns, however, that the pace of relief is likely to slow. Earlier rate cuts have largely worked their way through the system, while income growth is decelerating as labour markets weaken—particularly in Ontario, where joblessness has climbed well above pre-pandemic levels.

The bank expects affordability to improve further by year-end, but only enough to offset about half of the pandemic-era deterioration. “Further advancement becomes more challenging once interest rates reach a stable plateau as it depends exclusively on home price movements and household income trends,” RBC noted. With prices broadly expected to hold steady and wages rising only moderately, the scope for additional progress is limited.

“However, we anticipate broadly stable pricing across Canada over the next two years with some regional variations and moderate wage increases,” RBC added.

Mortgage arrears inch higher but remain near historic lows

As of July 2025, 11,430 Canadian mortgages were in arrears by three months or more, representing 0.23% of all residential loans, according to the Canadian Bankers Association. That’s up from 0.15% in mid-2023, but the national arrears rate has held steady at about 0.22–0.23% since June.

Saskatchewan continues to have the highest arrears rate at 0.54%, followed by Manitoba (0.33%) and Alberta (0.26%). Ontario and British Columbia reported arrears of 0.22% and 0.21%, respectively, while Quebec remained below the national average at 0.18%.

Despite the increase over the past year, more than 99% of Canadian mortgage holders remain current on their payments. The CBA notes that arrears tend to track employment conditions, meaning a softer job market could put more households under pressure.

Mortgages in arrears in Canada – what the numbers mean — ***Source: Canadian Bankers Association***

Manulife partners with M3 to expand mortgage protection

Manulife Canada and M3 Financial Group have announced a new partnership to make mortgage protection insurance more accessible through M3’s broker network, starting with a launch in British Columbia. The collaboration will give brokers access to Manulife’s Mortgage Protection Plan, which includes life and disability coverage, integrated directly into M3’s BOSS platform.

“By combining Manulife’s mortgage protection expertise with M3’s broker network, we’re giving brokers the tools to help more Canadians protect one of the biggest financial purchases they’ll make,” said Pamela Wong, Head of Affinity at Manulife Canada.

Paul Desire, Senior Vice-President at Simplinsur, called the partnership “protection where it belongs—at the heart of the mortgage conversation,” adding that it will help clients safeguard their homes “faster, with less friction and more confidence.”

Haventree joins CMHC-backed mortgage-bond programs

Haventree Bank has been approved by CMHC to participate in the National Housing Act Mortgage-Backed Securities (NHA MBS) and Canada Mortgage Bond (CMB) programs. The bank marked the milestone by ringing the opening bell alongside TSX Trust, which will serve as document custodian for the NHA MBS program.

The securitization programs, backed by CMHC’s guarantee of principal and interest, are central funding tools in Canada’s mortgage market. They allow approved lenders to pool insured mortgages and sell them to investors, creating more stable and cost-effective access to capital while supporting liquidity across the system.

Launched in 2001, the CMB program has become a cornerstone of mortgage financing, with AAA-rated bonds that attract broad investor demand. Participation in these channels expands Haventree’s funding options within Canada’s mortgage finance system.

Next Steps: Mortgage industry career moves

Amir Parsa and Michael Neal join Safebridge Financial Group

Safebridge Financial Group has announced that Amir Parsa and Michael Neal, co-founders of North Power Mortgages Inc., are joining the firm.

Based in Toronto’s Financial District, North Power built a reputation as a boutique brokerage with a team of top producers and extensive banking and lending experience. Parsa and Neal are known for their client-focused approach and broad expertise ranging from first-time home purchases to private commercial financing.

Their move to Safebridge marks an expansion of the firm’s reach in the Toronto market and brings added depth to its broker network.

Canada Guaranty announces leadership changes across sales and national accounts

Canada Guaranty has announced several senior leadership appointments reflecting its continued focus on service and support for partners nationwide.

Christine Kamel has been appointed Director of Sales, Quebec. With more than 25 years of experience in the mortgage and financial services industry, she brings extensive expertise in business development and team leadership. At the same time, Jamie Woods has been named Director, National Accounts. Woods, who joined Canada Guaranty in 2015 and most recently served as Director of Sales, Quebec, will now expand his work with key partners across the country.

Brad Checknita has been promoted to Vice President, National Accounts. Previously based in Western Canada, he will continue to draw on his deep industry knowledge and strong relationships from Canada Guaranty’s head office in Toronto. With Brad’s move, Trish Hall steps into the role of Director of Sales, British Columbia. Hall has been with the company since 2017 and is recognized for her commitment and industry insight.

In addition, Mike Klassen will return to Alberta to lead sales in Alberta and the Prairies, while continuing to oversee Eastern Canada until a successor is named. Klassen has supported partners across the country in previous roles and brings a strong focus on client relationships to his new position.

Canada Guaranty said the appointments highlight its continued investment in service and support for brokers and lenders nationwide.

Yousry Bissada joins iA Financial Group board

Yousry Bissada, the former CEO of Home Trust and current Vice Chair of the Board following its merger with Fairstone Bank, has joined the board of iA Financial Group (Industrial Alliance).

Bissada is well known in the mortgage industry for leading Home Trust through a period of significant transformation, from the 2017 liquidity crisis to its successful turnaround in the broker channel. Over his career, he’s also held senior leadership roles at Kanetix, Paradigm Quest, Filogix, TD Canada Trust, CIBC Mortgages, and Firstline Trust.

In a recent post, he highlighted iA’s brand evolution as “a key moment in the organization’s history,” praising the teams behind the company’s bold transformation. Bissada also continues to serve on the board of the Princess Margaret Cancer Foundation.

Faisal Siddiqi named Deputy Chief Actuary, Pensions at FSRA

The Financial Services Regulatory Authority of Ontario (FSRA) has appointed Faisal Siddiqi as Deputy Chief Actuary, Pensions, effective September 29.

Siddiqi is a Fellow of both the Canadian Institute of Actuaries and the Society of Actuaries, with more than 30 years of experience in pension consulting, administration, investment and governance. He most recently served as Managing Director, Actuary at the University Pension Plan, where he helped establish the organization’s asset-liability management and pension administration systems, oversaw the merging of plans, and developed actuarial and funding risk frameworks.

At FSRA, he will join the Pensions Leadership Team and lead Actuarial Services and the Special Transactions Team.

Ana Bailão appointed CEO of Build Canada Homes

Former Toronto deputy mayor and mayoral candidate Ana Bailão has been named chief executive officer of Build Canada Homes, the federal government’s new housing agency.

Bailão brings more than two decades of experience in housing and public service, including 12 years on Toronto City Council, where she chaired the planning and housing committee. Most recently, she led affordable housing and public affairs at Dream Unlimited Corp.

As CEO, she will oversee the agency’s mandate to accelerate housing supply, strengthen affordability and advance modular and factory-built construction in partnership with governments, Indigenous communities, industry and the non-profit sector.

“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.