For homeowners, investors, and industry professionals, staying informed is critical. At Lendworth, we’re committed to offering clear, timely insights to help you navigate the road ahead with confidence.
Interest Rates: Stability with a Watchful Eye
Following February’s inflation report of 2.6%, the Bank of Canada held its overnight rate steady at 2.75%. This stability has extended into April and May, with the next rate announcement scheduled for June 4, 2025. Most analysts expect the central bank to maintain its cautious stance, as inflation remains close to the 2% target but global uncertainty still looms.
What this means for borrowers:
- Mortgage rates remain elevated, with limited signs of short-term cuts
- Fixed-rate mortgages continue to hover near 5.75%–6.25% for prime borrowers
- Private lending and alternative financing remain vital for buyers and homeowners who need fast, flexible solutions
Real Estate Market: Gradual Rebound, Regionally Driven
While some Canadian markets are seeing renewed buyer interest, the real estate recovery remains uneven and location-specific. In the Greater Toronto Area (GTA), prices are stabilizing after a soft 2024, while mid-sized cities and suburban markets are showing stronger resilience due to affordability and population growth.
Key takeaways:
- Home prices are plateauing in high-demand urban centers
- Inventory remains tight, supporting values despite higher rates
- Investor interest is returning, particularly in income-producing properties
Mortgage Industry: Alternative Lending on the Rise
With traditional lenders tightening their criteria, the role of private and alternative lenders continues to grow. At Lendworth, we’ve seen a surge in demand for equity-based solutions, including first and second mortgages, HELOCs, and construction financing.
Borrowers are increasingly seeking:
- Faster approvals and flexible terms
- Common-sense underwriting focused on property equity and exit strategies
- Tailored financing for self-employed individuals, investors, and credit-challenged borrowers
Looking Ahead: Planning for Certainty in an Uncertain Market
While the broader economy remains in a holding pattern, homeowners and investors can still act decisively. Those with significant home equity are in a strong position to access capital, consolidate debt, or invest in growth opportunities.
At Lendworth, we believe the key to success in 2025 is adaptability—leveraging expert insights, alternative lending, and strategic planning.
Need advice or want to explore financing options? We’re here to help.
Lendworth is a leading private mortgage lender and investment management firm in Ontario, offering tailored lending solutions to homeowners and investors across the province.
Contact Information:
- Phone: +1 905-597-1225
- Email: info@lendworth.ca
- Address: 10-8750 Jane Street, Vaughan, Ontario, L4K 2M9, Canada