That makes it the second-biggest June on record, trailing only the ultra-low-rate frenzy of 2021.
But here’s the twist: this borrowing boom isn’t necessarily a sign of soaring home sales—it’s the delayed echo of Canada’s pandemic-era pre-construction boom, and it’s creating unique opportunities in today’s market.
Why Are Mortgage Originations Spiking in 2025?
Much of this growth isn’t from new purchases—it’s from completions. Investors who bought condos and homes in the 2020–2022 low-rate window are now closing on those properties and need financing. With tens of thousands of homes under construction, this trend is just getting started.
And with borrowing rates down significantly from last year, buyers are taking advantage of improved affordability. In fact, uninsured mortgage rates averaged 4.59% in June, down over 1% from 2024—boosting buyer leverage by nearly 10%.
What Mortgage Products Are Canadians Choosing?
Homebuyers are playing smart in today’s volatile interest rate environment:
- 3- to under 5-year fixed rates: Now the top pick at 36.9% of all mortgages, with an average rate of 4.13%, the lowest among all products.
- Variable rates: Making a comeback at 31.5%, thanks to rate cuts and falling borrowing costs (average: 4.53%).
- 5-year+ fixed terms: Regaining traction as rates settle (average: 4.25%).
- Short-term mortgages: Losing popularity due to high costs, averaging over 7.6% for sub-1-year terms—best suited for niche needs like bridge loans or delayed closings.
What Does This Mean for Homeowners and Investors?
If you’re a homeowner looking to refinance, or an investor closing on a pre-construction unit, now is the time to act. Mortgage originations are rising, rates are softening, and lenders are competing for deals. It’s a sweet spot for borrowers with equity—but not necessarily traditional income.
Why Lendworth?
At Lendworth Canada, we specialize in fast, flexible, equity-based mortgages across the Greater Toronto Area. Whether you're refinancing before a maturity, closing on a new property, or looking to pull out equity for other investments, we can help.
✅ No income verification
✅ Loans starting from 8.99%
✅ Residential mortgages across Toronto, Vaughan, Mississauga & more
✅ Ideal for completions, refinances, and bridge financing
You don’t need to wait for another rate cut to make your move—because with Lendworth, your equity is your opportunity.
Looking Ahead: More Completions = More Financing
With record-high levels of construction from the 2020–2022 boom still working their way through the pipeline, originations are expected to remain strong into 2026. But that doesn’t mean you should wait. The best deals—and the most leverage—are going to those who act while confidence is still building.
📞 Ready to close with confidence?
Start your mortgage approval today with Lendworth.
👉 www.lendworth.ca | 📩 info@lendworth.ca | ☎️ 905-597-1225