Before the Bank of Canada began cutting its benchmark interest rate earlier this year, some analysts hoped falling rates would trigger a clear recovery in the housing market. Three consecutive cuts later, that recovery has not yet materialized. Markets have reacted only modestly so far, and many economists say deeper rate reductions will be required to meaningfully boost demand as buyers still face high ownership costs and strained affordability.
With more rate cuts expected before year-end, we asked four experts whether now is a good time to buy a home in Canada. Will improved mortgage affordability push demand and raise prices? What other economic or demographic forces are shaping the market? And how are high housing costs affecting different groups—from first-time buyers to retirees looking to downsize? The following edited interviews offer practical perspectives for prospective buyers.
(Interviews have been edited for length and clarity.)
Is this a good time to buy a home in Canada?
An economist’s perspective:
David-Alexandre Brassard, MA, BA, is the chief economist for CPA Canada, which provides financial literacy resources for Canadians.
Brassard says the best short answer is: now is as good a time as any. Central banks are cutting rates, and many economists expect mortgage rates to fall more quickly than previously thought. That reflects a weaker economic outlook—rates are forward-looking and respond to expected economic conditions. Most forecasts he sees anticipate rates drifting lower into late 2025.
The key question for buyers is whether mortgage affordability will improve. Brassard is skeptical. He notes a growing share of household wealth is tied up in housing—particularly in Toronto and Vancouver, where housing represents roughly 46%–47% of net worth compared with about 34% nationally a few years ago. That shift leaves less saving for retirement and reduces room for further price appreciation overall.
Brassard points to price-to-income ratios to explain affordability pressure. Nationally the ratio sits around eight times income—meaning a dual-income household still faces housing costs roughly four times their combined earnings. In Vancouver and Toronto the ratio is closer to 11 or 12 times income. As rates fall, lenders may allow households to borrow more, and with persistent supply constraints prices could rise again.
His conclusion: given limited downward pressure on prices and ongoing supply issues, “now is as good a time as any” to buy if you’ve already decided to enter the market.
A financial planner’s perspective:
Ayana Forward is an independent, fee-only Certified Financial Planner at Retirement in View in Ottawa.
Forward focuses on retiree behavior and lifestyle choices. Many older Canadians are thinking about downsizing—moving from large family homes to condos or retirement communities that require less maintenance and offer social programs and amenities. This trend is driven by empty nesters who no longer need the space and by those who want to simplify life and free up equity.
For some retirees, selling a larger home is a financial necessity; they may need equity to maintain their desired standard of living if retirement savings are insufficient. Others consider gifting some equity to adult children or using proceeds to rent in a location closer to family. Behavioral considerations—such as the desire for security and a comfortable lifestyle—can be as important as financial calculations.
Forward’s advice: weigh the lifestyle benefits, the need for liquidity, and the emotional comfort of your housing choice when deciding whether to sell or buy.
A realtor’s perspective:
John Pasalis is president of Realosophy Realty in Toronto.
Pasalis says recent rate cuts haven’t produced an immediate market surge, at least not for the fall market. Mortgage rates—both fixed and variable—are trending lower, and further cuts this year will likely improve affordability and bring some buyers back. However, he expects only a modest increase in demand because inventory levels are still elevated in many markets and because broader economic worries, such as rising unemployment risk, could dampen buyer confidence.
His practical advice to buyers is to focus on readiness and fit rather than trying to time short-term market moves. A home purchase is a long-term commitment: periods of higher inventory and less competition are often less stressful. While declining rates can help, the strength of the broader economy will ultimately determine how much demand rises.
A mortgage broker’s perspective:
Ron Butler is a mortgage broker and founder of Butler Mortgage in Toronto.
Butler emphasizes regional differences. He cautions that in markets like Toronto and Vancouver, condo prices could continue to fall, making them less attractive buys right now. By contrast, low-rise homes in parts of Quebec, Alberta and other provinces may offer better value.
He also highlights product choice: with the expectation of ongoing rate declines, variable-rate mortgages are again gaining favor among some borrowers. Butler believes mortgage rates could approach roughly 4% by next summer, which would be an attractive borrowing environment.
Long-term supply trends matter too. In provinces such as Ontario and British Columbia, new low-rise construction has slowed in recent years, creating scarcity that could support prices for single-family homes. That scarcity can create a price floor, especially for buyers who aspire to low-rise living rather than high-rise alternatives.
Ultimately, Butler says there is no single right answer. Prospective buyers must weigh the risk that bidding activity and prices could pick up against the possibility that rates will fall further and improve affordability. Honest planning and an assessment of personal circumstances remain essential.
If you’re considering buying, focus on your long-term plans, your comfort with monthly payments, and the local market conditions where you intend to live. Lower rates can help, but supply, regional trends and the broader economy will determine how much and how quickly the housing market changes.
Read more about buying a home:
- Mortgage payments going up at renewal? Practical steps you can take.
- A parents’ guide to home down payment gifts and loans.
- How much income you need to qualify for a mortgage in Canada.
- Using registered accounts to help with home purchases and savings strategies.