Let's Talk House Episode 20: How Canadians Are Navigating Mortgages in 2025—CMHC Survey Deep Dive

Curious about what’s really happening in Canada’s housing market? On Let’s Talk House, I break down the latest trends, real stories, and insider tips from the 2025 CMHC Mortgage Consumer Survey—so you don’t have to navigate real estate alone. Whether you’re a first-time buyer, a seasoned homeowner, or just dreaming about your next move, tune in for honest conversations and practical advice that make sense for real life in today’s market. Hit play and let’s make your homeownership journey a little easier, together!

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Transcript

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What if I told you that despite all the headlines about soaring prices and rising rates, Canadians are more determined than ever to own a home? Behind every mortgage stat in 2025 is a story of grit, hope, and creativity. Maybe even your own. In today's episode, we're unpacking what's really driving home buying decisions this year and how you can turn today's challenges into your next opportunity. Only here at Let's Talk House, your go-to source for all things real estate, mortgage and beyond in Toronto and the Greater Toronto Area in Canada. Welcome home. I'm your host, Leigh Villar-Cisneros. Today, we're unpacking the latest insights from the 2025 CMHC Mortgage Consumer Survey released on May 21st. Let's see what nearly 4,000 Canadians had to say about their mortgage journeys this year. Optimism in the face of pressure. Despite all the headlines about affordability challenges, The survey shows that optimism is alive and well. Between 79% and 82% of Canadians still believe home ownership is a solid long-term investment. And about 70% to 75% expect their home's value to rise in the next year. That's a powerful vote. of confidence even as the market shifts. But it's not just about hope. Roughly three quarters of mortgage consumers said they felt confident they secured the best mortgage deal for their needs. This suggests Canadians are getting savvier doing their homework and shopping around for rates. Let's talk about first-time buyers, stretching, sharing, and staying hopeful because their journey is anything but easy in 2025. Only 12% of recent mortgage consumers were first-time buyers, a number that's up slightly from last year but still well below the highs seen during the pandemic boom. What's different about this group? 65% paid the maximum they could afford for their home, showing just how far people are willing to stretch to get in the door. 41% relied on financial gifts of inheritance for their down payment, with the average gift topping$79,000. 54% bought their home with someone other than a spouse or partner. Often a parent or family member as a cosigner highlighting how collaborative buying is becoming the new norm. Despite these hurdles, 79% of first-time buyers still see their purchase as a good investment and 74% feel they got a favorable mortgage deal. Now let's talk about renewals, refinances, and the power of preparation. Renewals made up a whopping 65% of all mortgage transactions this year, continuing a multi-year climb. With so many Canadians facing renewal at higher rates, financial preparedness is critical. The survey... The survey found that nearly two-thirds of buyers made a budget before purchasing, and 70% built a financial buffer to handle unexpected costs of interest rate hikes. Refinancers are also a big part of the story, with many using this opportunity to consolidate debts or fund renovations, especially as more Canadians look to add rental suites for extra income. Now, the rise of digital research and professional advice. How are Canadians navigating all these decisions? Well, it's obviously by going digital. More than half of respondents turn on social media platforms like YouTube and Instagram for mortgage advice, a dramatic jump from previous years. Traditional broker websites still matter, but the first search often happens on a phone, not a lender portal. Professional advice is also in demand. 42% of buyers used a mortgage broker in 2025, and 86% said it helped them feel prepared during the process. This shows the value of expert advice and guidance in a complex, fast-changing market. Let's talk about hidden costs, stress points, and the importance of financial literacy. The survey also highlights some pain points 35% of first-time buyers cited lawyer fees as an unexpected cost, a reminder to budget for more than just your down payment and mortgage. Closing costs, property taxes, and ongoing maintenance can add up quickly. And let's not forget the emotional side. 39% of buyers found the mortgage qualification process stressful. especially in high-priced markets. The mortgage stress test remains a major hurdle, but it's there to ensure buyers can handle future rate increases. Now we're seeing new patterns in the rental income and secondary suites. With affordability tight, Canadians are getting creative. About a quarter of homeowners already rent out part of their home and another 10% plan to add a suite. Rental income is increasingly seen as the buffer that lets households handle higher payments and rising costs. So what does this mean for you? So, what's the big takeaway from the 2025 CMHC Mortgage Consumer Survey? Canadians are adopting, stretching budgets, relying on family, leveraging digital tools, and seeking professional advice. The dream of home ownership is still alive, but the past is more collaborative, creative, and complex than ever before. If you're planning to buy, renew, or refinance this year, take a cue from your fellow Canadians. Do your research, both online and with trusted professionals. Build a budget and a financial buffer. Don't be afraid to ask for help from family, friends or experts. Thanks for joining me on Let's Talk House. If you found today's episode helpful, be sure to subscribe, leave a review and share it with someone navigating the real estate journey. Got questions or topics you want to hear about? reach out. I love hearing from you. Until next time, keep dreaming, keep planning, and remember, your next move is just a conversation away. You've been listening to Let's Talk House Podcast, your go-to source for all things real estate, mortgage, and beyond in the Greater Toronto Area in Canada. Be sure to press the follow button so you won't miss an episode. Also, subscribe to my YouTube channel, follow me on Instagram and Facebook at Les Villars Real Estate. As always, thanks for listening and we'll see you next time. Next time.