Canada’s housing market is rebounding in mid‑2025. After a prolonged slowdown, home sales surged by 3.6% from April to May, marking the first increase since November 2024. Meanwhile, prices have remained largely stable, with the national average near $691,300 and the MLS® Home Price Index holding steady.
This shift—from cooling to balance—presents a key opportunity to reassess your mortgage plans. In this guide, we unpack the data, explore what it means for borrowers, and introduce smart strategies. Along the way, we’ll link to helpful deep dives like managing mortgage renewals or choosing the right rate structure.
1. Understanding the Mid‑2025 Market Shift
CREA data show that while May’s home sales were down 4.3% YoY, they rebounded 3.6% from April, and listings increased roughly 13% YoY—yielding a more balanced market with stronger buyer choice. Prices, meanwhile, have largely stabilized, with the MLS® Home Price Index dipping just 0.2% MoM and down only 3.5% YoY. This suggests a true market recovery, not just a bounce-back.
2. Rate Pause & Forward Guidance
The Bank of Canada has maintained its policy rate at 2.75%, following seven cuts. Analysts now forecast two more quarter-point cuts—potentially down to 2.25% by late 2025—keeping both fixed and variable mortgage rates trending lower. For buyers and homeowners, this spells an opportunity to lock in relatively low borrowing costs.
3. Why This Matters for Your Mortgage
- Renewal Relief: With improving market conditions, lenders are more open to negotiation at renewal time—see our deep dive on Mortgage Renewals in 2025: How to Navigate Higher Payments Without the Panic for tips on budgeting and refinancing.
- Rate Decisions: Unsure whether to go fixed or variable? Read our comprehensive guide: Fixed vs. Variable Rate Mortgages: Making the Right Choice During Economic Uncertainty.
- Refinancing Strategies: Thinking of refinancing? Our article Refinancing in a Lower‑Rate Environment: Is Now the Right Time for BC Homeowners? explores costs and timing.
- First‑Time Buyer Help: New amortization rules are game-changers—see The Rise of 30‑Year Amortization for First‑Time Buyers: What It Means for BC’s Housing Market for extended payment insights.
- Tax Incentives: Curious about GST savings? Check GST Proposed Cut for First‑Time Buyers: Will It Fix Affordability?.
- Local Grants: BC‑based? Explore Government Grants & Incentives for First‑Time Home Buyers in BC.
- BC Market Snapshot: Want a closer look at local trends? Read Home Prices Dip & Sales Surge: What BC Homeowners Should Do Now.
4. Risks to Watch
- Global Sensitivities: External factors like U.S.–Canada trade and slowing immigration can still influence demand.
- Regional Gaps: Urban condo markets in Ontario and BC remain sluggish, while prairie and Atlantic regions show strength.
- Forecast Uncertainty: CREA has tempered its full-year projections, though the mid‑year rebound is clear.
5. What’s Ahead for You
As markets rebalance and rates hold—or dip—homeowners and buyers face a pivotal moment. In Part 2, you’ll find tactical, actionable guidance based on your situation:
- For current homeowners: renewal strategies, refinancing options, and how to lock in great terms.
- For prospective buyers: negotiation tactics, mortgage structure decisions, and timing insights.
6. Mortgage Strategies for Current Homeowners
If you’re nearing renewal in 2025, the current rebound offers a chance to reassess your terms and improve your financial position. Many borrowers locked in during the peak rate environment of 2022–2023. With rates stabilizing and lender competition returning, now’s the time to restructure your mortgage to ease future payments.
- Leverage Rate Cuts: As the Bank of Canada maintains its 2.75% policy rate with future cuts expected, homeowners can consider renegotiating terms before the next wave of rate shifts. Learn how to Navigate Mortgage Moves During BoC’s Mid‑2025 Rate Pause.
- Consolidate Debt Strategically: If you’ve accumulated higher-interest debts, refinancing or tapping into home equity can help. Explore Debt Consolidation vs. Mortgage Refinancing: HELOC Guide.
- Renew Early or Switch Lenders: Learn about switching before term end in Smart Strategies for Mortgage Transfers in 2025 and 5 Tips to Follow When Renewing a Mortgage.
- Consider a Variable Option: For those who previously feared variable rates, this may now be a more attractive choice. Our analysis in Fixed vs. Variable Rate Mortgages offers guidance.
7. Strategies for First-Time Buyers
The market shift has brought increased inventory and a slightly more balanced environment for buyers. However, many are still dealing with affordability constraints.
- Use Extended Amortization: The new 30-year option for insured mortgages can reduce your monthly payments. Read The Rise of 30‑Year Amortization for First‑Time Buyers.
- Explore Local Programs: If you’re buying in BC, grants and rebates are now more accessible. Start with Government Grants & Incentives for First‑Time Home Buyers in BC.
- Understand the Stress Test: While some renewals are now exempt, new mortgages still require you to qualify. Get insights in Mortgage Stress Tests in 2025: What Homebuyers in BC Need to Know.
- Make the Most of Rate Drops: Timing your approval and lock-in is key. Our recent blog on Refinancing in a Lower‑Rate Environment has key tips that also apply to new applicants.
- Fast-Track Your Approval: Explore First-Time Homebuyer Mortgage Guide for Abbotsford and Surrey or How Much Mortgage Can You Afford in 2025?.
8. Regional Opportunities in BC and Alberta
In places like Abbotsford, Surrey, and Edmonton, buyers are responding quickly to price stability and rising listings:
- In Abbotsford and Surrey, demand from first-time buyers is supported by new programs and amortization flexibility.
- In Edmonton, rental-to-owner transitions are increasing as buyers capitalize on lower home prices and adjustable-rate offers.
If you’re unsure whether now is the time to jump in, start with Home Prices Dip & Sales Surge: What BC Homeowners Should Do Now for a regional breakdown.
9. Final Thoughts
As 2025 unfolds, the rebound in sales and price stability creates opportunity—but only for those who act smartly. Whether you’re renewing your mortgage, buying your first home, or refinancing to improve cash flow, understanding the broader market and local context is essential.
At Sandhu & Sran Mortgages, we’re helping clients across Abbotsford, Surrey, and Edmonton turn this market moment into lasting financial advantage.
FAQs: Housing Market & Mortgages in Mid‑2025
Q1. Is 2025 a good year to buy a home in BC or Alberta?
Yes. With prices stable, rates likely to drop further, and inventory up, this is a relatively favourable window—especially for first-time buyers and move-up buyers.
Q2. Will my mortgage renewal cost more in 2025?
Not necessarily. While some renewals involve higher rates than five years ago, lender flexibility, extended amortizations, and potential rate cuts can soften the impact. See Mortgage Renewals in Mid‑2025: Plan Before Rates Shift.
Q3. What’s the benefit of switching mortgage lenders at renewal?
You may get lower rates, better terms, or cash incentives. However, fees and timing are important—learn more in Smart Strategies for Mortgage Transfers in 2025.
Q4. What should I consider when choosing between fixed and variable rates?
The answer depends on your risk appetite and timeline. With rates likely to fall further in late 2025, many buyers are reassessing the variable option. See our insights on Fixed vs. Variable Rate Mortgages.
Q5. Do new mortgage rules affect all borrowers?
Mostly new applicants and buyers. Renewals may bypass stress tests depending on the lender, and amortization extensions are limited to insured first-time buyers.