Mortgage Archives - Akler Browning LLP

In recent months, the housing market pendulum has swung more toward affordability for first-time home buyers than it has in several years, for two reasons. First, after years of price increases, the average cost of a home in Canada has (according to the Canadian Real Estate Association) declined by about 3.4% over the past year. At the same time, cuts made by the Bank of Canada in interest rates have resulted in lower mortgage lending costs. In July of 2023, the Bank Rate (from which all other lending rates are derived) stood at 5.25%; as of the end of October 2025, it was 2.5%. While getting into the position of being able to purchase a first home is still a formidable task, that goal is now somewhat more accessible than it has been for some time.

At first glance, it might seem that the financial pressures experienced by Canadian families would have eased over the last year or so. The spike in interest rates which started in early 2022 has abated, with the Bank of Canada cutting its benchmark rate several times since mid-2023. As well, the rate of inflation, which had reached 6.8% in late 2022, began moderating during 2023 and now (as of March 2025) stands at 2.3%. It would seem, then, that both the cost of daily life (as reflected in the rate of inflation) and the cost of debt servicing (as reflected in the Bank’s benchmark interest rate) would have both become more manageable in recent months.