Should We Buy in 2025

Should You Buy a House in 2025?

04/26/2025 | Dee Ann Marcoux, Mortgage Broker |

With rising living costs and new tariffs imposed on Canadians by President Donald Trump, here are 5 key Pros and Cons you should know before making your move:

Pros:

  1. Potential for Price Stabilization: Home prices in Ontario are projected to stabilize or experience modest growth in 2025, offering buyers a more predictable market.
  2. Easing Interest Rates: Economists anticipate slight decreases in interest rates during the latter half of 2025, potentially reducing borrowing costs for homebuyers.
  3. Increased Housing Inventory: Government initiatives aimed at boosting construction are expected to add more housing options, providing buyers with more inventory and potentially reducing competition.
  4. Government Incentives: Programs such as the First-Time Home Buyer Incentive and adjustments to mortgage rules, including extended amortization periods, may make homeownership more accessible.
  5. Long-Term Investment Potential: Ontario’s real estate market has demonstrated consistent long-term growth, suggesting that purchasing a home could be a valuable investment over time.

Cons:

  1. Affordability Challenges: Despite potential rate cuts, high home prices and weak spending power mean mortgage costs may remain unaffordable for many Canadian homebuyers.
  2. Economic Uncertainty: Trade tensions and economic uncertainties may impact consumer confidence and the housing market, potentially affecting property values and investment returns.
  3. Regulatory Changes: New regulations, such as adjustments to mortgage rules and rent controls, could influence the housing market dynamics and impact buyers’ decisions.
  4. Potential for Further Price Declines: Some experts suggest that home prices may continue to drop, which could affect the timing and value of a home purchase.
  5. High Upfront Costs: Purchasing a home involves significant upfront expenses, including down payments, closing costs, and legal fees, which can be a barrier for many potential buyers.

Carefully evaluating these factors in the context of your personal financial situation and long-term goals is crucial before making a decision to buy a home in Ontario this year.