CMHC recently reported a significant uptick in housing starts for September 2025, signaling a slow but steady recovery in Toronto’s housing starts market. After years of limited construction due to high borrowing costs, this increase is a positive sign. While there’s currently an oversupply of condos, the lack of building over the past three years could lead to a shortage in the coming years, making now an ideal time to consider your options.
Interest rates are about 2.5% lower than a few years ago, but with expected Bank of Canada rate cuts in October and possibly December, we could see rates drop into the low-to-mid 3% range by year-end. Historically, 3% has been the sweet spot for financing, and lower rates are already reducing builders’ costs, spurring new projects.
The market is firmly in favor of buyers, with average home prices down 25% from their highs. Surprisingly, many buyers remain hesitant; possibly waiting on a finalized tariff deal (expected this year) and further rate cuts. With these developments on the horizon, 2026 could see increased market momentum, making now a strategic time to take advantage of lower property prices.
Lenders typically roll out promotional pricing in late October. Currently, high-ratio and CMHC-insured mortgages offer rates in the high 3% range, while refinances and mortgages over $1 million are in the low 4% range. With further rate cuts expected, we could see rates in the 3% across all financing options by the end of 2025.
Whether you’re up for renewal, considering refinancing to consolidate debt or access equity, or looking to get pre-approved for a purchase, please reach out. Now is the perfect time to explore your options.
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