Interest rate cuts and changes to Canada’s mortgage rules could set the stage for change in the Greater Toronto Area’s real estate market this year, experts say.Last year the federal government expanded eligibility for 30-year mortgage amortizations to all first-time homebuyers and all purchasers of new builds and also increased the $1 million price cap for insured mortgages to $1.5 million.
Real estate broker Andrew Ipekian says these changes to the mortgage rules could get more buyers out in the spring. He says he expects the market for homes priced between $1 to $1.5 million 'is going to be really robust for 2025.' The Bank of Canada lowered its interest rate by 50-basis points to 3.25 per cent in December, marking the fifth consecutive reduction since June. Ipekian says those cuts haven't made big waves in the market yet, but that might change heading into the new year. 'It takes time for dust to settle and for people to realize what their purchasing power is going to be,' he said.Interest rate cuts and changes to mortgage rules could mean a shift for Toronto's real estate market this year. CBC's Talia Ricci spoke to experts to find out what buyers and renters should expect., Royal LePage broker Shawn Zigelstein says he expects 2025 could see more activity from buyers who weren't able to enter the market before. 'People are now able to afford things a little bit more with interest rates dropping, new mortgage rules in place,' he said.However, Zigelstein says he doesn't expect a repeat of the bidding wars frenzy of the pandemic.When it comes to condos, Zigelstein says he thinks the market is oversaturated due to a surplus of inventor