Published: March 25th, 2025 • Last Updated: March 26th, 2025
Author: Ross Taylor on AskRoss.ca

Don’t Miss These Mortgage Trends in Spring 2025

Spring is here, and with it comes a fresh wave of activity in Canada’s mortgage and real estate markets. There’s no denying that things are shifting rapidly—and this spring, there are more moving parts than usual.

With a massive wave of mortgage renewals, policy changes making it easier to switch lenders, and evolving market conditions, now is the time to pay attention to your mortgage strategy.

So, what does all of this mean for you? Whether you’re a homeowner with a mortgage renewal around the corner, a first-time buyer trying to get into the market, or someone exploring refinancing or income property options, there’s something in this market you should be paying attention to.

Let’s dive into what’s happening and how you can take advantage of these opportunities in 2025.

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• Why are so many Canadians renewing their mortgages right now?
• Is it really easier to switch lenders in 2025?
• Does a bigger paycheque mean you can afford a bigger house?
• Are home prices really going up again?
• What’s the impact of higher insured mortgage limits?
• Is pent-up demand finally hitting the market?
• What about first-time buyers and longer amortization?
• How do first-time buyers benefit from a 30-year mortgage?
• Could variable-rate mortgages make a comeback?
• Refinancing for secondary suites goes mainstream
• Wildcards to watch out for in 2025

Why are so many Canadians renewing their mortgages right now?

Since the start of the year, CMHC estimates that 100,000 mortgages have been up for renewal every month. Many homeowners locked in their rates before mid-2022 when interest rates were much lower. Now, they’re facing higher rates and looking for ways to reduce their costs.

Naturally, everyone’s looking for ways to soften the blow. This has created a kind of frenzy—renewal clients are shopping around more aggressively, and lenders are hustling harder than usual to keep their clients–which could work in your favour.

What should you do if your mortgage is up for renewal?

Push back on the first offer

• Your lender’s first renewal offer is rarely their best. Push for better terms or a lower rate—there’s often room to negotiate.

Compare what’s out there

• Don’t just stick with your current lender out of convenience. Use online rate comparison tools—or better yet, talk to a broker (like me!) who knows what’s really available across the board.

Talk to someone who works for you

A mortgage broker works in your interest, not the bank’s. We can help you navigate your options and negotiate something that works for your financial goals—not the lender’s profit margins.

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Is it really easier to switch lenders in 2025?

Yes—and this is a game-changer. New rules mean many borrowers can now skip the mortgage stress test when switching lenders, even if their mortgage is uninsured. This means less red tape and more flexibility if you’re looking for a better mortgage rate.

The mortgage stress test used to be a huge barrier for anyone wanting to shop around at renewal time.

What should you do if you’re thinking of switching?

Check if you qualify for stress test relief

• This doesn’t apply to everyone—if you’re increasing your mortgage, the stress test still applies. But for straightforward switches, you might be in the clear.

Shop around smartly

• With the stress test out of the way, you’re free to explore more competitive lenders. That kind of freedom can translate into serious savings.
• The practical way to do this is to align with a respected mortgage broker who is intimately familiar with market offerings across all distribution channels

Get your documents in order

• Even with the streamlined rules, lenders still need the basics—Be ready with income verification, mortgage statements, and credit reports when applying to switch.

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Does a bigger paycheque mean you can afford a bigger house?

Wages have been rising—StatsCan shows the average hourly wages rose by 3.5% year-over-year as of January 2025, and before that, weekly earnings across Canada rose 5.8% year-over-year in December 2024

This is good news for mortgage affordability, especially when mortgage interest rates are declining steadily since mid 2024.

What should you do with this increased borrowing power?

Don’t overextend yourself

• Just because you can borrow more doesn’t mean you should. Make sure the payments still fit your long-term budget.

Keep your credit in shape

• Your income might help you qualify for more, but your credit score is still king when it comes to securing the best mortgage rates.

Use tools to stay on track

• Budgeting tools and financial planners can help you make the most of your income boost without overstretching.

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Are home prices going up again?

Yes—national forecasts are calling for a 4%+ increase in home prices this year. But let’s not ignore the bigger picture: global trade tensions, especially with the U.S., are creating some wild cards.

Still, in most markets across Canada, competition is heating up, and it’s shaping up to be a buyer’s market.

What should you do if you’re buying this spring?

Research your local market

• National numbers are just that—national. Real estate is hyper-local, so look at your city or region for a more accurate picture.

Plan your down payment strategy

• Take advantage of the First Home Savings Account (FHSA), TFSAs, and first-time homebuyer incentives to bulk up your down payment.

Get a professional appraisal of the property you are interested in

• Especially in competitive markets, don’t skip the appraisal. You want to be sure you’re paying a fair price.

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What’s the impact of higher insured mortgage limits?

One of the quiet but powerful changes this year: the insured mortgage cap jumped from $1 million to $1.5 million. That opens the door for more buyers to access lower rates and smaller down payment options.

How do you take advantage of these changes?

Understand the benefits

• Insured mortgages typically come with lower rates and only require 5% down (on the first $500,000).

Check if you qualify

• You still need to meet certain income and credit score requirements to be eligible for insurance.

Compare your options

• Depending on your situation, an uninsured mortgage may make sense. Weigh the pros and cons–This is where professional advice can make all the difference.

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Is pent-up demand finally hitting the market?

After a couple of years of holding back, many would-be buyers are ready to jump in. Economic uncertainty and high rates made a lot of people hit pause, but now we’re seeing that demand slowly start to resurface.

What can buyers do to stay competitive?

Time your purchase carefully

• Watch rate trends, housing inventory, and local pricing. Timing really can make a difference.

Get pre-approved before you start shopping

• It shows sellers you’re serious and helps you stay within your actual budget.
• Knowing your borrowing limits before you start house-hunting will also save you time and stress. And, of course, your real estate agent will thank you for this!

Schedule a home inspection

• Even in a hot market. You don’t want any nasty surprises post-closing.
• A thorough inspection helps avoid unexpected repair costs and problematic properties.

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How do first-time buyers benefit from a 30-year mortgage?

First-time buyers can now choose a 30-year mortgage period instead of 25 years on insured mortgages, making homeownership more affordable by lowering monthly payments.

Important notes for homebuyers and longer amortization periods:

Lower payments now, more interest later

• Longer amortizations mean lower monthly payments but higher overall interest costs.

Watch how it affects your insurance premium

• CMHC insurance costs might be higher depending on your down payment and amortization choice.

Make a long-term plan

• A longer mortgage commitment requires careful financial planning.
• Extended amortizations work best when paired with a plan to make lump sum payments or increase payments down the road.

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Could variable-rate mortgages make a comeback?

Absolutely. If forecasts hold, we could see variable rates drop by another 50 to 75 basis points by the end of this year. If you’re comfortable with some short-term volatility, this could be a real opportunity for you.

What do you need to consider when choosing a variable rate mortgage?

Understand the risk

• Variable rates can save you money—but only if you’re financially and emotionally equipped to ride the waves of rate changes.

Do the math against fixed rates

• Sometimes, peace of mind with a fixed rate is worth the extra cost. Do the math before making your decision.

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Refinancing for secondary suites goes mainstream

This is one of the more exciting developments: Soon, new government programs will allow you to refinance up to 90% of your home’s value to build a secondary suite.

That’s a big deal for anyone thinking of unlocking equity to generate rental income.

How can you make the most of it?

Evaluate the rental income potential

• A well-designed basement suite or garden suite can help offset your mortgage and increase property value.

Know the local rules of the area where you want to build a secondary suite in

• Municipal zoning and rental regulations matter. Check before you build.

Get expert help for refinancing

• There’s a strategy to tapping into equity without overleveraging. Let’s talk about how to do it right.

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Wildcards to watch out for in 2025

While the trends we laid out above are promising, several external factors could influence the market, including global economic shifts, tariff wars, Canadian immigration policies, and lender competition.

What should you do?

Stay informed

• Pay attention to news about global trade, job markets, and immigration—these things impact rates and housing demand.

Understand population shifts

• An influx of new residents could further drive housing demand. Conversely, with new immigration coming to a grinding halt, this could weaken demand and put downward pressure on rents as well.

Leverage lender competition

• Banks and lenders are fighting for your business. Use that to your advantage—and work with someone who knows how to navigate it all.

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Advice From Ross Taylor Mortgages – Re: Spring Changes in 2025

Spring 2025 is not the time to coast on autopilot when it comes to your mortgage. There are real opportunities out there—whether you’re renewing, refinancing, or entering the market for the first time.

But the key is to be proactive, ask the right questions, and build a strategy that suits your financial goals.

If you’re not sure where to start, reach out. Let’s have a conversation and make sure your mortgage is working for you—not the other way around.

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