Mortgage summary: Ease in home ownership costs may be short-lived, RBC says

adminOctober 7, 2025

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Mortgage summary: Ease in home ownership costs may be short-lived, RBC says

RBC Economics says Canadian housing affordability has been improving steadily, thanks in large part to rising incomes, although the pace of those gains is now expected to slow.

“Strong gains in household income growth have been responsible for more than a third of the decline in RBC’s national affordability measure over the past year and a half,” the bank noted in its latest report. The measure fell to 53.6% in Q2 2025, down from a record 63.5% at the end of 2023, reflecting the combined impact of lower interest rates, higher prices and stable wages.

The greatest improvements were seen in Vancouver, Toronto and Victoria, although these cities remain the least affordable markets in Canada. In contrast, affordability in Grande Prairie has returned to historical norms, while Regina is the only market where costs are higher.

cOur Features: RBC Economics

However, RBC warned that the pace of relief could slow. Earlier reductions have largely passed through the system, and income growth is decelerating as the labor market weakens – especially in Ontario, where unemployment is well above pre-pandemic levels.

The bank expects affordability to improve further by the end of the year, but only to offset about half of the pandemic-era deterioration. RBC noted: “Once interest rates reach a plateau of stability, further progress becomes more challenging as it depends solely on shifts in house prices and household income trends.” With prices broadly expected to be stable and wages rising only modestly, the scope for further progress is limited.

“However, we expect pricing to stabilize broadly across Canada over the next two years with some regional changes and increases in median wages,” RBC added.

Mortgage arrears inch higher, but remain near historic lows

According to the Canadian Bankers Association, as of July 2025, 11,430 Canadian mortgages were delinquent for three months or more, accounting for 0.23 per cent of all residential loans. That was 0.15% in mid-2023, but the national arrears rate has been steady at 0.22–0.23% since June.

Saskatchewan has the highest arrears rate at 0.54 per cent, followed by Manitoba (0.33 per cent) and Alberta (0.26 per cent). Ontario and British Columbia have arrears of 0.22 per cent and 0.21 per cent respectively, while Quebec remains below the national average at 0.18 per cent.

Despite increases over the past year, 99 per cent of Canadian mortgage holders are still current on their payments. The CBA noted that arrears tend to track employment conditions, meaning a softer job market could put more households under pressure.

Mortgage Arrears in Canada – What the Numbers Mean — ***Source: Canadian Bankers Association***

Expanding mortgage protection with M3’s Manulife partnership

Manulife Canada and M3 Financial Group have announced a new partnership to make mortgage protection insurance more accessible through M3’s brokerage network, launching in British Columbia. The partnership will give brokers access to Manulife’s mortgage protection plans, which include life and disability coverage, integrated directly into M3’s Boss platform.

“By combining Manulife’s mortgage protection expertise with M3’s brokerage network, we are giving brokers the tools to help more Canadians protect one of the largest financial purchases they will ever make,” said Pamela Wong, head of Affinity at Manulife Canada.

Calling the partnership “at the heart of the mortgage conversation,” Simpleinsur’s senior vice president Paul Desive said it will help customers secure their homes “faster, with less friction and with more confidence.”

Haventree joins CMHC-backed mortgage program

Haventree Bank has received CMHC approval to participate in the National Housing Act Mortgage Securities (NHA MBS) and Canada Mortgage Bond (CMB) programs. The bank marked the milestone by opening the opening bell with the TSX Trust, which will serve as the custodian of documents for the NHA MBS program.

Backed by CMHC’s principal and interest guarantees, the securitization program is the centrally funded vehicle in the Canadian mortgage market. They allow approved lenders to aggregate insured mortgages and sell them to investors, creating more stable and cost-effective access to capital while supporting liquidity throughout the system.

Launched in 2001, the CMB program has become a cornerstone of mortgage financing, with its AAA-rated bonds attracting widespread investor demand. Participating in these channels expands Haventree’s funding options within Canada’s mortgage financing system.

Next steps: Mortgage industry career moves

Amir Parsa and Michael Neal join Safebridge Financial Group

Safebridge Financial Group announces Amir Parsa and Michael Nealco-founder of North Power Mortgages Inc., is joining the company.

Headquartered in Toronto’s Financial District, North Power has built a reputation as a boutique brokerage firm with a group of top producers and extensive banking and lending experience. Parsa and Neal are known for their client-focused approach and extensive expertise in everything from first-time home purchases to private commercial financing.

Their move to Safebridge marks an expansion of the company’s coverage in the Toronto market and adds depth to its broker network.

Canada Guarantee announces leadership changes for sales and national accounts

Canada Guarantee has announced several senior leadership appointments, reflecting its continued focus on serving and supporting partners across the country.

Christine Kamel Has been appointed Sales Director Quebec. With over 25 years of experience in the mortgage and financial services industry, she has extensive expertise in business development and team leadership. at the same time, Jamie Woods Appointed Director of National Accounts. Woods, who joined Guaranteed Canada in 2015 and most recently served as sales director for Quebec, will now expand work with key partners across the country.

Brad Checknita Promoted to Vice President, National Accounts. Previously based in Western Canada, he will continue to leverage his deep industry knowledge and strong relationships at Assurance’s headquarters in Toronto. brad’s move, trish concert hall British Columbia Sales Director Role. Hall has been with the company since 2017 and has been recognized for his commitment and industry insight.

also, Mike Klassen will return to Alberta to lead sales in Alberta and the Prairie while continuing to oversee Eastern Canada until a successor is named. Klassen has served partners across the country in previous roles and is focusing on his new role.

Canada Guarantee said the appointment underscores its continued investment in the service and support of brokers and lenders nationwide.

Yousry Bissada joins IA Financial Group Board of Directors

yoursry bissadaThe former CEO of Family Trust and current vice chairman of the board of directors has joined the board of directors of IA Financial Group (Industrial Alliance) following its merger with Fairstone Bank.

Bissada is well known in the mortgage industry for leading the housing trust through major transitions from the 2017 liquidity crisis to the successful turnaround of Broker Channel. During his career, he has also held senior leadership positions at Kanetix, Paradigm Quest, Filogix, TD Canada Trust, CIBC Mortgages and Firstline Trust.

In a recent article, he highlighted IA’s brand evolution as a “pivotal moment in the organization’s history,” and he praised the team behind the company’s bold transformation. Bissada also continues to serve on the Board of Directors of the Princess Margaret Cancer Foundation.

Faisal Siddiqi named deputy chief actuary, FSRA Pensions

Ontario’s Financial Services Regulatory Authority (FSRA) has appointed faisal siddiqi As Deputy Actuary, Pensions, effective September 29.

Siddiqi is a member of the Actuaries of Canada and the Institute of Actuaries and has more than 30 years of experience in pension consulting, administration, investments and governance. He most recently served as Managing Director of Actuaries at the University Pension Scheme, where he helped establish the organization’s asset liability management and pension administration systems, oversaw the plan’s merger, and developed the actuarial and financing risk framework.

At FSRA, he will join the pensions leadership team and lead the actuarial services and special transactions teams.

Ana Bailão named CEO of Building Families Canada

Former Toronto deputy mayor and mayoral candidate anna bell has been named CEO of the federal government’s new housing agency, Build Canada Homes.

Bailão has over two decades of experience in housing and public services, including 12 years with Toronto City Council, where she served as Chair of the Planning and Housing Committee. Most recently, she led affordable housing and public affairs at Dream Unlimited Corp.

As CEO, she will oversee the agency’s mission to accelerate housing supply, enhance affordability and advance modular and factory-built construction in partnership with government, Indigenous communities, industry and the not-for-profit sector.

What’s Next is a feature in our Mortgage Digest that highlights notable changes and career developments within the mortgage industry. If you have work updates, we welcome your submissions to keep the community in the loop.