Mortgage Renewals Fast Approaching, and Homebuyers Determined to Make Ownership a Reality

This week’s top real estate stories.

By  Jared Lindzon | 2 minute read

Every Friday, Wahi brings you the most important real estate stories from the past week. 

Canadian Buyers Won’t Back down

Despite taking blows from all directions, homebuyers refuse to throw in the towel. In Wahi’s second-annual Homebuyer Intentions Survey, conducted by Angus Reid, we found that Canadians are planning to go all-in on home ownership in 2025. According to the survey, 52% plan to cut back on spending, 31% intend to alter their investment strategies, and 30% intend to put in extra hours at work to get into the housing market this year. Each of those findings also represent a significant increase from last year’s results, with non-owners even more likely to take those measures to afford their first home.  

Timberrrrrr!  

Like those swapping out cocktails for Kombucha for Dry January, Ontario may be swapping its reliance on concrete for a different, healthier substance. That’s because, starting this year, developers in the province can now use mass timber to build more sustainable and affordable housing up to 18 stories high. The natural building material can be locally sourced from Canada’s backyard while maintaining the same fire resistance and structural integrity standards of the goopy grey stuff used now. Not only is it cheaper, but mass timber is also lighter, easier to work with, more sustainable, and quieter to build with. 

New Year, New Government

In last week’s newsletter, we predicted that political turmoil would shape housing policy this year and while we do love a victory lap, we certainly couldn’t have predicted this much turmoil this quickly. On Monday Prime Minister Justin Trudeau announced that he would not seek re-election, putting this year’s federal election into uncharted territory. What that means for housing policy is still to be determined, but expect the affordability crisis to take centre stage, as parties offer competitive visions for addressing what remains the number one issue for voters.

The Year Many Mortgage Holders Have Been Dreading  

As the holiday celebrations turn to a January hangover, Canadians are waking up to the reality that their mortgage renewal is fast approaching, and it’s got them shaking in their champagne-soaked boots. According to a survey by Mortgage Professionals Canada, about a third of mortgage holders are up for renewal this year, nearly 70% of whom are anxious about the process. Furthermore, 77% of mortgage holders say their term ends within the next three years, leading 61% of borrowers to cut back on spending. Some are even changing jobs or taking on extra work to help cover the higher costs. 

GTA Housing Market Still Finding Itself  

The Toronto Regional Real Estate Board is showcasing some black-belt-worthy verbal jujutsu labelling a historically slow 2024 as a “transition year” for the GTA’s housing market. According to its latest report, home sales were up 2.6% compared to 2023, but single-family homes made up much of the increase, as the condo market plummeted. Meanwhile, home prices remained relatively flat in 2024, but inventory skyrocketed 16.4% compared to last year. The report also notes that sales declined in December compared to the same month in 2023, despite declining interest rates, while new listings continued to significantly outpace demand.

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