If you followed the Ontario mortgage world this year, you know 2025 didn’t exactly tiptoe by. Rates shifted, inventory opened up in some markets, and buyers moved between excitement and hesitation — sometimes in the same afternoon. It was a year of quieter but meaningful changes, the kind that shape how we walk into the next one.
Here’s a clear, grounded look at what stood out and what it could mean for 2026.
Rates Finally Took a Breath
After several intense years of volatility, 2025 offered something homeowners had been waiting for: stability. With the Bank of Canada easing rates throughout the year, many Ontarians found it a little easier to plan their next move.
Variable-rate borrowers felt some welcome relief, and fixed-rate shoppers benefited from steadier conditions — the kind that let you map out your options without refreshing rate updates like they’re breaking news.
Inventory Improved in Some Markets
Ontario didn’t suddenly become a buyer’s playground, but we did see signs of improved inventory in several areas. More homeowners listed — some downsizing, some relocating, some responding to friendlier conditions.
While the change wasn’t universal across the province, the added supply helped bring a touch more balance to conversations that had long been dominated by scarcity.
Affordability Stayed Front and Centre
Even with modest improvements, affordability remained a major challenge. Many buyers continued looking to creative strategies — co-ownership, blended purchases, or refinancing existing homes to free up funds.
We’ve seen this play out before, particularly in our earlier discussion about using refinancing to improve cash flow. Those same long-term financial moves gained traction again in 2025.
Refinancing Became More Strategic
One shift we noticed this year was more homeowners using refinancing proactively rather than reactively. Whether consolidating debt, planning renovations, or preparing for future purchases, refinancing became a way to strengthen long-term financial footing.
It echoes what we explored in our “Broker vs. Banker” conversation: when you have guidance you trust, your decisions tend to be more strategic and less stressful.
What This Could Mean for 2026
If current trends continue, 2026 may offer more opportunity — steady, measured opportunity. Many analysts anticipate a continued path toward rate normalization, which could encourage buyers who’ve been waiting for a more comfortable entry point.
Homeowners renewing in 2026 may also find themselves facing more manageable options than those who renewed at the height of the rate cycle. And if the market keeps moving in this direction, we could see more balance between buyers and sellers.
Still, the right move depends on your own financial story. Market trends are helpful context, but your strategy should be built around your goals and what makes sense for your household.
Planning Your 2026 Mortgage Strategy?
Whether you’re preparing for a purchase, a renewal, or a refinance, our team is here to help you navigate it with clarity and confidence. Reach out anytime — we’re happy to walk through your options and make sure you feel ready for the year ahead.
