Mortgage rates at 3% or lower the magic number to reignite Canada’s housing market

Financial Post ~ May 9th, 2025

Mortgage rates need to drop to three per cent to get Canada’s housing market and homebuyers fired up again, say some industry watchers.

The lowest rate for a five-year fixed-rate mortgage, preferred by many Canadian buyers and homeowners, is currently 3.74 per cent, according to MortgageLogic.news, an aggregating site operated by Financial Post columnist Robert McLister.

“One of the reasons that we were never really expecting a big rebound in housing into the spring was because that level of borrowing cost isn’t low enough to trigger a lot of activity,” Robert Kavcic, a senior economist at BMO Capital Markets, said.

Click here to read the full article.