12/30/2025
2025 Mortgage Year in Review
Bank of Canada: The Bank of Canada had 8 policy rate announcements in 2025, with 4 of them being holds and 4 of them being 25 basis point drops. That mean’s we’ve seen rates drop a full percentage point, which is reflected on lower mortgage, GIC and other borrowing rates.
Housing Prices: Canadian average home prices started January at $702,200 and November’s data came in at $682,219. There's a lot of regional variability though!
Condo Crash: Toronto condo activity had been skyrocketing, and pre-construction units were selling at highly inflated prices. In 2025, that bubble burst and prices have dropped, people have walked away from big investments and not taken possession of units to cut their losses.
Delinquency Rates: Mortgage delinquency rates (those behind 90 days or more on mortgage payments) had been on a slow rise until this year, when we saw the first decrease since 2022. The rate is quite low compared to other countries, sitting at 0.22% nationally.
Reverse Mortgages: This option for borrowers over 55 has continued its rise in popularity in Canada. New financial services companies have launched reverse mortgage products and more older Canadians are relying on them as income or early inheritance for their children.
Bank of Mom and Dad: New homebuyers are relying more than ever on financial assistance from their family for a down payment or qualification help. In the past year, 70% of first-time buyers say they couldn't have bought their home without financial assistance.
US Tariffs: The ongoing tariff situation has caused global economic uncertainty, which indirectly leads to lower bond yields, a lower Bank of Canada prime rate, and lower fixed mortgage rates. Higher raw materials costs have also increased construction costs on new builds. Poor employment sentiment thanks to the tariffs has kept many buyers waiting and wondering.
Longer Amortizations: Canada has made 30-year amortizations available to first time home buyers. On the bright side, this means lower payments which might be the difference between renting and owning. However, it will result in more interest and higher cost of ownership over the life of the mortgage.
Continuity: I believe that one of our strengths is our experience. With over 26 years in the mortgage industry, there is almost no scenario I haven’t seen. I understand that every dollar is important to my clients, and we will always strive to find the best mortgage for you. I hear the frustration from new clients that have been passed around from bank employee to bank employee during the course of obtaining a mortgage. With Team Duggan Mortgage, you’ll always deal directly with me.
2025 Numbers: In 2025, almost 60% of the mortgages I arranged were for repeat clients. Almost 25% were direct referrals from existing clients, and 8% of new clients I worked with were children of existing clients.
Expansion: Team Duggan Mortgage – The Mortgage Centre continues to add staff to serve your mortgage needs and to meet the ever-expanding regulatory requirements. We greatly appreciate your business and look forward to assisting you, your family, friends, and co-workers throughout 2026.
As always, feel free to reach out if you have any questions about your mortgage. I am happy to help.
Many thanks,…Patrick Duggan
Team Duggan Mortgage - The Mortgage Centre Patrick Duggan, Principal Broker/Director
[email protected]
FSRA Brokerage Licence #13080
Tel: 905-299-4665
124 King Street
Milton, ON
L9T 1J9
