Canadian Home Sales Post Best September In Four Years
Today’s release of the September housing data by the Canadian Real Estate Association (CREA) showed a pullback on the housing front. The number of home sales recorded through Canadian MLS® Systems declined by 1.7% on a month-over-month basis in September 2025. Nevertheless, it was the best month of September for sales since 2021

The slight monthly decline was the result of lower sales activity in Greater Vancouver, Calgary, Edmonton, Ottawa, and Montreal, which more than offset gains in the Greater Toronto Area and Winnipeg.

“While the trend of rising sales that began earlier this year took a breather in September, activity was still running at the highest level for that month since 2021, and that was true in July and August as well, said Shaun Cathcart, CREA’s Senior Economist. “With three years of pent-up demand still out there and more normal interest rates finally here, the forecast continues to be for further upward momentum in home sales over the final quarter of the year and into 2026.”

New Listings

New supply dropped 0.8% month-over-month in September. Combined with a slightly larger decline in sales activity, the sales-to-new listings ratio eased slightly to 50.7% compared to 51.2% in August. The long-term average for the national sales-to-new listings ratio is 54.9%, with readings roughly between 45% and 65% generally consistent with balanced housing market conditions.

There were 199,772 properties listed for sale on all Canadian MLS® Systems at the end of September 2025, up 7.5% from a year earlier but very close to the long-term average for that time of the year.

“While there are more buyers in the market now than at almost any other point in the last four years, sales activity is still below average and well below where the long-term trend suggests it should be,” said Valérie Paquin, CREA Chair. “As such, we expect things to continue to pick up steadily in the future.

There were 4.4 months of inventory on a national basis at the end of September 2025, unchanged from July and August and the lowest level since January. The long-term average for this measure of market balance is five months of inventory. Based on one standard deviation above and below that long-term average, a seller’s market would be below 3.6 months, and a buyer’s market would be above 6.4 months.

Home Prices

The National Composite MLS® Home Price Index (HPI) was again almost unchanged (-0.1%) between August and September 2025. Following declines in the first quarter of the year, the national benchmark price has remained mostly stable since April.

The non-seasonally adjusted National Composite MLS® HPI was down 3.4% compared to September 2024. Based on the extent to which prices fell off beginning in the fall of 2024, look for year-over-year declines to shrink in the fourth quarter of the year.

Bottom Line

Homebuyers are responding to improving fundamentals in the Canadian housing market. Supply has risen as new listings surged until May of this year. Additionally, the national benchmark average price is 3.5% lower than it was a year earlier. That decrease was smaller than in August.

The view is nearly unanimous that the Federal Reserve will cut the overnight policy rate again by 25 basis points when it meets again on October 29.

The jury is out on the Bank of Canada’s next move. Their decision date is also October 29. While the stronger-than-expected labour market report might have dissuaded the Bank from easing, all eyes will be on the next CPI report on October 21.

With the Bank of Canada cutting the policy rate halfway through September and another 25-basis-point reduction expected by January, if not sooner, the CREA forecasts sales to rise by 7.7% in 2026.

“Interest rates were always going to be the thing that brought this thing back to life,” Cathcart said in an interview. “While that long-anticipated recovery has been delayed and dampened by trade uncertainty, the Bank of Canada is getting close to dipping out of the neutral range and into stimulative territory.

Canadian Employment Rises More Than Expected, But Not Enough To Fully Offset Prior Two-Month Job Loss

Today’s Labour Force Survey for September was stronger than expected, with a net employment gain of 60,400, but the unemployment rate was steady at 7.1% as more people entered the workforce. The employment gain was driven by full-time work. The manufacturing sector–hard hit by US tariffs–added 27,800 employees, and agriculture, health care and other services all added workers. The employment rate — the proportion of the working-age population that’s employed — rose 0.1 percentage points to 60.6% in September.

Average hourly wages among employees increased 3.3% (+$1.17 to $36.78) on a year-over-year basis in September, following growth of 3.2% in August (not seasonally adjusted).

The surprisingly strong job gains suggest Canada’s job market is showing some resilience to tariff disputes with the US. The jump in factory employment, although not driven by autos, suggests the sector may benefit from some exporters’ exemption from levies under the Canada-US-Mexico trade Agreement.

The loonie surged in response to the news as shorter-term interest rates rose. The report reduces expectations for a rate cut when the Bank of Canada meets again on October 29, with traders putting the odds at about 25%, down from 70% before the data release. However, the better-than-expected job gains did not fully offset the losses posted in July and August, as Canada shed a net 45,900 jobs over the third quarter, the weakest quarter since the pandemic.

Total hours worked fell 0.2% last month, and the labour force rose by 72,300.

Even with the latest jobs report, the Canadian economy remains vulnerable to the unsettling US attitude towards the free trade agreement, which is slated to be renegotiated by July 2026. The Bank of Canada cut the overnight policy rate to 2.5% in September, and additional rate cuts are likely this year. The Bank has only two more decision dates in 2025: October 29 and December 10. September inflation data will be released on October 21, the day after the BoC publication of the Business and Consumer Outlook Survey.

The overall unemployment rate was unchanged at 7.1% in September, following a 0.2 percentage point increase in August. Since the start of 2025, the unemployment rate has increased by 0.5 percentage points. The trend has generally been upward since the beginning of the year, with an increase of 0.6 percentage points compared to January. Youth unemployment rates remain elevated, with the jobless rate among students at a whopping 17.1%, and at 11.9% for youth not attending school.

Employment in manufacturing rose in September (+28,000; +1.5%), the first increase since January. The gain was concentrated in Ontario (+12,000) and Alberta (+7,900). Before the rise in September, employment in manufacturing had recorded a net decline of 58,000 (-3.1%) from January to August.

Employment change by industry, September 2025

In Quebec, employment was little changed for a third consecutive month in September. The unemployment rate in Quebec in September (5.7%) was down from the recent peak of 6.3% recorded in June, and little changed on a year-over-year basis. However, Quebec will undoubtedly see job losses in the aluminum and lumber industries unless US tariffs are reduced sharply.

Employment was also little changed in Ontario in September. The unemployment rate in the province increased by 0.2 percentage points to 7.9% in September, as more people searched for work. The unemployment rate in the province was up 0.8 percentage points from September 2024. In the CMA of Toronto, the unemployment rate was unchanged at 8.9% in September 2025 and was up 0.8 percentage points on a year-over-year basis (three-month moving averages).

Bottom Line

The Bank of Canada has made it clear that it will focus on inflation as well as on increasing slack in the economy, and a September cut may still hinge on the consumer price index released next week. Labour markets are still softer than they were a year ago. The unemployment rate held steady at 7.1% in September, but it remains up half a percent from a year ago. International trade data softened in August, and U.S. tariffs remain a significant threat to the economic outlook.

It is doubtful that Bank of Canada policymakers thought in September that just one cut in the overnight rate would be enough to address economic weakness, and the labour force data today probably isn’t positive enough alone to derail another cut in October. Still, the Bank of Canada will also have to take into account the next round of inflation data – and future cuts beyond October would be less likely if government deficit spending ramps up as expected to help address tariff-related economic weakness.

The central bank is well aware that the Labour Force Survey is notoriously volatile, and the jobless rate at 7.1% is still up half a percentage point from a year ago. The underlying details of the report were not as positive. Actual hours worked declined despite the surge in full-time employment. And permanent layoffs ticked higher. But other sectors have remained broadly resilient. Services employment was up 18k month-over-month and 225k year-over-year last month.

If you are reading this you probably have a keen interest in improving your financial situation — but how are you going to measure your progress?

The easiest way is by setting and achieving a goal. This could be short-term and focused, like wiping out a credit card debt. On the other hand, it could be a long-term goal like burning the mortgage five years ahead of time after twenty years of scrimping and saving.

Achieving either of these goals is a great accomplishment, but they may not tell the whole story. The problem with both of them is they are independent from all of the other factors that affect your financial standing. What if the value of the house you just paid off has dropped 20% over the last year, or you eliminated one credit card balance only to see another card or line of credit head in the opposite direction?

No single metric tells the whole story of your financial progress. Paying yourself first and diligently putting $300 from every paycheque into your RRSP will definitely help you hit your retirement goals. However, you also need to monitor the growth from investing your RRSP as well as any other assets that are contributing to your retirement fund and ensure the total value is steadily tracking towards your goal.

Cash flow is another common measure of financial progress. Tracking your income and expenses helps you understand how much money you have available after covering your costs. Positive cash flow is a surplus that can be used for saving, investing, or paying down debt — but it doesn’t measure how effective you were at putting that cash surplus to work. You may think you are making progress, but if you let the cash sit in a bank savings account instead of a GIC in your TFSA, then you actually made comparatively poor progress.

If you want to keep it simple and look at only one metric to get a holistic view of your financial health, measuring your net worth can provide you with valuable insights. It’s an easy-to-understand concept that will help you analyze your financial health and overall progress towards your financial goals.

Calculating your net worth isn’t all that difficult and although it represents only a snapshot in time, the main advantage is that it provides a comprehensive snapshot. It takes into account all of your assets (such as cash, investments, real estate, and valuable possessions) and subtracts your liabilities (such as debts and loans). Monitoring your net worth forces you to be aware of all your financial accounts and can help you make more informed decisions about your spending, saving, and investing habits.

As you work to increase your assets and reduce your liabilities, your net worth should show positive growth. This signifies that you’re making smart financial decisions and accumulating wealth over time. Seeing your net worth increase can be motivating and reinforce positive financial behaviors. On the flip side, if you notice a decline, it can signal that you need to reevaluate your financial decisions and make necessary adjustments.

Monitoring your net worth helps you understand how effectively you’re building wealth. Although the market value of assets such as stocks or real estate fluctuate, comparing your net worth to previous periods can still help you evaluate the effectiveness of different financial strategies you’ve implemented. This allows you to refine your approach and make changes as needed.

Your net worth is an essential factor in assessing your retirement readiness. It helps you determine if you’re on track to maintain your desired lifestyle during retirement and whether you need to adjust your savings and investment strategies. It can also influence your estate planning decisions. It’s important for determining how you want your assets distributed after your passing and for considering strategies to minimize potential estate taxes.

There are lots of ways to measure financial growth and no one method is perfect, but keeping an eye on your net worth is a relatively easy task that will do wonders for your motivation — why not give it a try?

Today’s Labour Force Survey for August was weaker than expected, indicating an excess supply in the labour market and the economy. Employment fell by 66,000 (-0.3%) in August, extending the decline recorded in July (-41,000; -0.2%). The employment decrease in August was mainly due to a decline in part-time work (-60,000; -1.5%). Full-time employment was little changed in August, following a decrease in July (-51,000; -0.3%).

The employment rate—the proportion of the working-age population who are employed—fell 0.2 percentage points to 60.5% in August, the second consecutive monthly decline. The employment rate has been on a downward trend since the beginning of the year, falling 0.6 percentage points from January to August.

The number of self-employed workers fell by 43,000 (-1.6%) in August. Self-employment has trended down in recent months, offsetting gains recorded in the second half of 2024 and in early 2025.

The private sector lost 7,500 jobs last month, while the public sector shed 15,000. Regionally, the provinces of Ontario, Alberta and British Columbia led losses.

Those who were unemployed in July continued to face difficulties finding work in August. Just 15.2% of those who were unemployed in July had found work in August, lower than the corresponding proportion for the same months from 2017 to 2019 (23.3%) (not seasonally adjusted).

The participation rate—the proportion of the population aged 15 and older who were employed or looking for work—fell by 0.1 percentage points to 65.1% in August.

From May to August, the Labour Force Survey (LFS) collects labour market information from students who attended school full-time in March and who intend to return to school full-time in the fall.

The unemployment rate for returning students stood at 16.9% in August, similar to the rate observed 12 months earlier (16.3%) (not seasonally adjusted).
For the summer of 2025 overall (the average from May to August), the unemployment rate for returning students aged 15 to 24 was 17.9%. This was the highest since the summer of 2009 (18.0%), excluding the pandemic year of 2020. The unemployment rate for returning students has increased each summer since 2022 (when it was 10.4%).

The unemployment rate among returning students in the summer of 2025 was higher for men (19.2%) than for women (16.8%).

Employment decreased in the professional, scientific, and technical services sector in August (-26,000; -1.3%), following five months of little change. Despite the monthly decline, employment in the industry was up 36,000 (+1.8%) compared with 12 months earlier.

Employment in transportation and warehousing fell by 23,000 (-2.1%) in August, offsetting a similar-sized increase in July. On a year-over-year basis, employment in the industry was little changed in August.

Employment change by industry in August 2025

Fewer people were working in manufacturing in August, down 19,000 (-1.0%). Compared with the recent peak of January 2025, employment in manufacturing has declined by 58,000 (-3.1%).

On the other hand, employment rose in construction (+17,000; +1.1%) in August, offsetting most of the decline in July (-22,000; -1.3%). Employment in construction has recorded little net variation since the beginning of the year, and the increase in August was the first since January.

Employment in Ontario decreased by 26,000 (-0.3%) in August. Compared to the recent peak in February 2025, employment in the province decreased by 66,000 (-0.8%) in August. The unemployment rate in Ontario declined by 0.2 percentage points to 7.7% in August, as the number of people searching for work decreased.

Since the beginning of the year, regions of Southern Ontario have faced an uncertain economic climate, brought on by the threat or imposition of tariffs, including on motor vehicle and parts exports. Across Canada’s 20 largest census metropolitan areas, the highest unemployment rates in August were in Windsor (11.1% compared with 9.1% in January), Oshawa (9.0% compared with 8.2% in January) and Toronto (8.9% compared with 8.8% in January) (three-month moving averages).

In British Columbia, employment decreased by 16,000 (-0.5%) in August, marking the second consecutive monthly decline. Losses in the month were mainly among core-aged men (-13,000; -1.2%). The unemployment rate in British Columbia rose 0.3 percentage points to 6.2%.

In Alberta, employment fell by 14,000 (-0.6%) in August, also the second consecutive monthly decrease. The most significant declines in the month were in manufacturing and in wholesale and retail trade. The unemployment rate in Alberta rose 0.6 percentage points to 8.4% in August, the highest rate since August 2017 (excluding 2020 and 2021).

Unemployment rate by province and territory, August 2025

Unemployment rates highest in southern Ontario census metropolitan areas

Employment also declined in New Brunswick (-6,500; -1.6%), Manitoba (-5,200; -0.7%), and Newfoundland and Labrador (-3,200; -1.3%) in August. Meanwhile, Prince Edward Island experienced an employment gain of 1,100 (+1.2%).

Employment held steady for a second consecutive month in Quebec in August. The number of people looking for work increased by 24,000 (+9.0%), pushing the unemployment rate up 0.5 percentage points to 6.0%.

Total hours worked were little changed in August (+0.1%) and were up 0.9% compared with 12 months earlier.

Average hourly wages among employees increased 3.2% (+$1.12 to $36.31) on a year-over-year basis in August, following growth of 3.3% in July (not seasonally adjusted).

Bottom Line

The two-year government of Canada bond yield fell about four bps on the news, while the loonie weakened. Traders in overnight swaps fully priced in a quarter-point rate cut by the Bank of Canada by year-end, and boosted the odds of a September cut to about 85%.

The Bank of Canada has made it clear that it will focus on inflation more than on increasing slack in the economy, and a September cut may still hinge on the consumer price index release, which is due a day before the rate decision.

The August US nonfarm payrolls report was also released this morning, showing that job growth stalled while the unemployment rate rose slightly to 4.3%. Several sectors, including information, financial activities, manufacturing, federal government and business services, posted outright declines in August. Job growth was concentrated in the healthcare and leisure and hospitality sectors.

Markets expect the Fed to cut rates by 25 basis points on September 17. Fed Chair Jay Powell has been under massive pressure from the White House to do so. Barring a meaningful rise in August core inflation measures, the Fed will resume cutting rates.

Statistics Canada released Q2 GDP data, showing a weaker-than-expected -1.6% seasonally adjusted annual rate, in line with the Bank of Canada’s forecast, but a larger dip than the consensus forecast. The contraction primarily reflected a sharp decline in exports, down 26.8%, which reduced headline GDP growth by 8.1 percentage points. Business fixed investment was also weak, contracting 10.1%, mainly due to a 32.6% decline in business equipment spending.

Exports declined 7.5% in the second quarter after increasing 1.4% in the first quarter. As a consequence of United States-imposed tariffs, international exports of passenger cars and light trucks plummeted 24.7% in the second quarter. Exports of industrial machinery, equipment and parts (-18.5%) and travel services (-11.1%) also declined.

Amid the counter-tariff response by the Canadian government to imports from the United States (which has now been rescinded), international imports declined 1.3% in the second quarter, following a 0.9% increase in the previous quarter. Lower imports of passenger vehicles (-9.2%) and travel services (-8.5%; primarily Canadians travelling abroad) were offset by higher imports of intermediate metal products (+35.8%), particularly unwrought gold, silver, and platinum group metals.

Export (-3.3%) and import (-2.3%) prices fell in the second quarter, as businesses likely absorbed some of the additional costs of tariffs by lowering prices. Given the larger decline in export prices, the terms of trade—the ratio of the price of exports to the price of imports—fell 1.1%.

But the report was not all bad news. Consumer resilience was also evident. Household consumption spending accelerated in Q2. Personal spending rose 4.5% compared to 0.5% in Q1. Government spending also notably contributed to growth.

An improvement in housing activity also added to economic activity. Residential investment grew at a firm rate of 6.3%, compared to a decline of 12.2% in the first quarter of the year.

Final domestic demand rose 3.5% annualized, reflecting resilience and perhaps Canadians’ boycott of US travel or US products. However, income growth was up just 0.7% year-over-year (at an annual rate), which pulled the savings rate down one percentage point to 5.0%, potentially hampering consumers’ ability to continue their spending.

Inventories of finished goods and inputs to the production process increased by 26.9%, reflecting the Q1 stockpiling of goods that would be subject to future tariffs.

While Q2 was soft, June GDP was arguably more disappointing at -0.1% m/m, two ticks below consensus. Manufacturing was the surprise, falling 1.5%. Services were mixed, with gains in wholesale and retail offsetting some broader weakness. The July flash estimate was +0.1% (on the firmer side, given some of the soft data thus far), but the June figure makes it clear that the final print can be quite different.

The Bank had Q2 GDP at -1.5% in their July Monetary Policy Report, so the miss was minor. And, the strength in domestic demand highlights the economy’s resilience. One negative is that Q3 is tracking softer than their +1% estimate (closer to +0.5%), but it’s still very early, and things can change materially.

Bottom Line

The odds are no better than even for the Bank of Canada to cut rates when they meet again on September 17. There are two key data releases before then — the August Labour Force Survey, released August 5, a week from today, and the August CPI release on September 16. We would have to see considerable weakness in both reports to trigger a Canadian rate cut next month.

A Fed rate cut is far more likely, as telegraphed by Chair Jay Powell at the annual Jackson Hole confab. The battle between the White House and the Fed has intensified with President Trump’s firing of Governor Lisa Cook, the first Black woman on the Board and a Biden appointee. If Trump were to succeed, it would enable him to appoint a majority of the Federal Reserve Board, potentially allowing him to dictate monetary policy.

Trump wants significantly lower interest rates in the US, but even if he succeeds, only shorter-term rates would decline. The loss of Fed independence could lead to higher, longer-term interest rates, which could likely result in higher fixed mortgage rates in Canada. Moreover, inflation pressures could intensify, leading to continued upward pressure on bond yields and diminishing the potential appeal of floating-rate mortgage loans.

Today’s CPI Report Shows Headline Inflation Cooling, But Core Inflation Remains Troubling
Canadian consumer prices decelerated to 1.7% y/y in July, a bit better than expected and down two ticks from June’s reading.

Gasoline prices led the slowdown in the all-items CPI, falling 16.1% year over year in July, following a 13.4% decline in June. Excluding gasoline, the CPI rose 2.5% in July, matching the increases in May and June.

Gasoline prices fell 0.7% m/m in July. Lower crude oil prices, following the ceasefire between Iran and Israel, contributed to the decline. In addition, increased supply from the Organization of the Petroleum Exporting Countries and its partners (OPEC+) put downward pressure on the index.

Moderating the deceleration in July were higher prices for groceries and a smaller year-over-year decline in natural gas prices compared with June.

The CPI rose 0.3% month over month in July. On a seasonally adjusted monthly basis, the CPI was up 0.1%.

In July, prices for shelter rose 3.0% year over year, following a 2.9% increase in June, with upward pressure mostly coming from the natural gas and rent indexes. This was the first acceleration in shelter prices since February 2024.

Prices for natural gas fell to a lesser extent in July (-7.3%) compared with June (-14.1%). The smaller decline was mainly due to higher prices in Ontario, which increased 1.8% in July after a 14.0% decline in June.

Rent prices rose at a faster pace year over year, up 5.1% in July following a 4.7% increase in June. Rent price growth accelerated the most in Prince Edward Island (+5.6%), Newfoundland and Labrador (+7.8%) and British Columbia (+4.8%). Moderating the acceleration in shelter was continued slower price growth in mortgage interest cost, which rose 4.8% year over year in July, after a 5.6% gain in June. The mortgage interest cost index has decelerated on a year-over-year basis since September 2023.

The Bank of Canada’s two preferred core inflation measures accelerated slightly, averaging 3.05%, up from 3% in May, and above economists’ median projection. Traders see the continued strength in core inflation as indicative of relatively robust household spending. There’s also another critical sign of firmer price pressures: The share of components in the consumer price index basket that are rising by 3% or more — another key metric the central bank’s policymakers are watching closely — expanded to 40%, from 39.1% in June.

CPI excluding taxes eased to 2.3%, while CPI excluding shelter slowed to 1.2%. CPI excluding food and energy dropped to 2.5%, and CPI excluding eight volatile components and indirect taxes fell to 2.6%.

The breadth of inflation is also rising. The share of components with the consumer price index basket that are increasing 3% and higher — another key metric that the bank’s policymakers are following closely — fell to 37.3%, from 39.1% in June.

Bottom Line

With today’s CPI painting a mixed picture, the following inflation report becomes more critical for the Governing Council. The August CPI will be released the day before the September 17 meeting of the central bank. There is also another employment report released on September 5.

Traders see roughly 84% odds of a Federal Reserve rate cut when they meet again on Sept 17–the same day as Canada. Currently, the odds of a rate cut by the BoC stand at 34%. Unless the August inflation report shows an improvement in core inflation, the Bank will remain on the sidelines.

Global Tariff Uncertainty Sidelines Buyers
Canadian existing home sales were unchanged last month as tariff concerns again mothballed home-buying intentions, mainly in the GTA and GVA where sales have declined for months. Consumer confidence has fallen to rock-bottom levels as many fear the prospect of job losses and higher prices.

The number of sales recorded over Canadian MLS® Systems was unchanged (-0.1%) between March and April 2025, marking a pause in the trend of declining activity since the beginning of the year. (Chart A) Demand is currently hovering around levels seen during the second half of 2022, and the first and third quarters of 2023.

“At this point, the 2025 Canadian housing story would best be described as a return to the quiet markets we’ve experienced since 2022, with tariff uncertainty taking the place of high interest rates in keeping buyers on the sidelines,” said Shaun Cathcart, CREA’s Senior Economist. “Given the increasing potential for a rough economic patch ahead, the risk going forward will be if an average number of people trying to sell their homes turns into a large number of people who have to sell their homes, and that’s something we have not seen in decades.”

New Listings

New supply declined by 1% month-over-month in April. Combined with flat sales, the national sales-to-new listings ratio climbed to 46.8% compared to 46.4% in March. The long-term average for the national sales-to-new listings ratio is 54.9%, with readings between 45% and 65% generally consistent with balanced housing market conditions.

At the end of April 2025, 183,000 properties were listed for sale on all Canadian MLS® Systems, up 14.3% from a year earlier but still below the long-term average of around 201,000 listings for that time of the year.

“The number of homes for sale across Canada has almost returned to normal, but that is the result of higher inventories in B.C. and Ontario, and tight inventories everywhere else,” said Valérie Paquin, CREA Chair.

There were 5.1 months of inventory on a national basis at the end of April 2025, which is in line with the long-term average of five months. Based on one standard deviation above and below that long-term average, a seller’s market would be below 3.6 months and a buyer’s market above 6.4 months.

Home Prices

The National Composite MLS® Home Price Index (HPI) declined 1.2% from March to April 2025. The non-seasonally adjusted National Composite MLS® HPI was down 3.6% compared to March 2024.

The National Composite MLS® Home Price Index (HPI) declined 1.2% from March to April 2025. The non-seasonally adjusted National Composite MLS® HPI was down 3.6% compared to March 2024.

Bottom Line

Before the tariff threats emerged, the housing market was poised for a strong rebound as the spring selling season approached.

Unfortunately, the situation has only deteriorated as business and consumer confidence have fallen sharply. While the first-round effect of tariffs is higher prices as importers attempt to pass off the higher costs to consumers, second-round effects slow economic activity, reflecting layoffs and business and household belt-tightening.

The Bank of Canada refrained from cutting the overnight policy rate for fear of tariff-related price hikes. Since then, Canadian labour markets have softened, and preliminary evidence suggests that economic activity will weaken further in recent months, despite a rollback in tariffs with China, at least temporarily.

While homebuyers are leery, real housing bargains are increasingly prevalent as supplies rise and home prices fall. Sellers are increasingly motivated to make deals, and pent-up demand is growing. Outside of the GTA and GVA, sales have remained positive.

We expect the Bank of Canada to cut the overnight rate again on June 4 as long as next week’s April inflation data are reasonably well behaved, which should be the case given the sharp fall in energy prices.

Managing debt is challenging at any age, but it can be especially stressful in retirement when income is limited. Many Canadians turn to debt consolidation to simplify payments and lower interest rates. However, traditional options—such as personal loans, refinancing, or home equity lines of credit—often require a strong credit score and steady income, making them difficult for retirees to secure.

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Common Debt Consolidation Options vs. The CHIP Reverse Mortgage
You may explore various debt consolidation strategies during retirement, but they can come with challenges:

Refinancing or HELOC: Requires strong credit and income; missed payments can lead to foreclosure.
Unsecured personal loans: Often come with high interest rates if credit is poor.
RRSP withdrawals: Can trigger withholding taxes and impact retirement income.
Balance transfer credit cards: Signing up for a structured debt consolidation loan through a 0% balance-transfer card may require proof of income to cover your monthly minimum payments.
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Protect Your Retirement Savings
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Why Choose the CHIP Reverse Mortgage?

No Monthly Payments Required: Focus on enjoying retirement without worrying about monthly mortgage payments.
Stay in Your Home: A common misconception about reverse mortgages is that the bank takes ownership of your home—but that’s not true. With the CHIP Reverse Mortgage, HomeEquity Bank provides tax-free cash based on your home’s value, while you remain the owner. You’re simply responsible for property taxes and upkeep. According to an Ipsos survey conducted on behalf of HomeEquity Bank, 93%2 of Canadians want to age in place, staying in the home they love. With CHIP, you can access your home’s equity and enjoy retirement on your terms.
Tax-Free Cash: Because you are unlocking home equity, the funds received from the CHIP Reverse Mortgage are not added to your taxable income and do not affect government benefits such as Old Age Security (OAS).
No Negative Equity Guarantee: The CHIP Reverse Mortgage has a No Negative Equity Guarantee3, which means that if you meet your property taxes and mortgage obligations, HomeEquity Bank guarantees that the amount owed on the due date will not exceed the fair market value of your home. If the house depreciates and the mortgage amount owing is more than the gross proceeds from the sale of the property, HomeEquity Bank covers the difference between the sale price and the loan amount.
Is the CHIP Reverse Mortgage Right for You?

If you want to enhance your retirement lifestyle while staying in the home, you love — without dipping into your savings — the CHIP Reverse Mortgage could be a potential solution for you. To explore how you can access tax-free cash through your home’s equity, contact your Dominion Lending Centres mortgage expert to learn more about the CHIP Reverse Mortgage.

1Some conditions apply.

2Survey conducted by Ipsos on behalf of HomeEquity Bank April 12-16, 2022

3As long as you keep your property in good maintenance, pay your property taxes and property insurance and your property is not in default. The guarantee excludes administrative expenses and interest that has accumulated after the due date

Refinancing your mortgage can be a smart financial move for many reasons, and as your trusted mortgage advisor, I’ve seen how much it can benefit homeowners!

Ideally, refinancing is done at the end of your mortgage term to avoid penalties, but the timing can vary depending on your goals. For some, it’s about unlocking the equity in their home to fund renovations or cover big expenses like college tuition. For others, it’s an opportunity to consolidate debt, lower their interest rate, or change up their mortgage product.

Let’s take a closer look at some of the ways refinancing your mortgage can help!

Get a Better Rate: As interest rates have continued to decrease with the Bank of Canada updates these past few months, now is a great time to consider refinancing for a better rate and lower overall mortgage payments! Experts anticipate the Bank of Canada will move to have the overnight rate down to 4.0% at year-end and potentially down to 2.75% for 2025.
Consolidate Debt: When it comes to renewal season and considering a refinance, this is a great time to review your existing debt and determine whether or not you want to consolidate it onto your mortgage. In most cases, the interest rate on your mortgage is less than you would be charged with credit card companies or other forms of financing you may have. Plus, having all your debt consolidated into a single payment can keep you on track!
Unlock Your Home Equity: Do you have projects around the house you’ve been dying to get started on? Need funds for a large purchase such as a new vehicle or post-secondary education? When you are looking to renew your mortgage, it is a great opportunity to consider refinancing in order to take advantage of the home equity you have built up to help with these larger changes in your life!
Change Your Mortgage Product: Are you unhappy with your existing mortgage product? If you have a variable-rate or adjustable-rate mortgage, you may be considering locking it in at the lower rates. Alternatively, you may want to switch your current fixed-rate mortgage to a variable option with the interest rates expected to continue decreasing into 2025. You can also utilize your refinance to take advantage of a different payment or amortization schedule to help pay off your mortgage faster!
PLUS! Some latest changes by the Government of Canada will make it even easier for you when it comes to your renewal and refinancing options:

Those of you who may have an uninsured mortgage will no longer have to pass the stress test as of November 21st. This means that you have more flexibility when it comes to rates and mortgage products in renewal cases where you wish to switch lenders without adding additional funds to your mortgage!
Beginning January 15, the federal government will allow default-insured mortgages to be refinanced to build a secondary suite. If you’ve been considering adding a suite to your property, you may be eligible to access up to 90% of your home’s equity for this purpose.
No matter your plans or situation, please don’t hesitate to reach out today!