What Canada’s 2025 Housing Plans Mean for Your Mortgage Options in B.C. & ALberta
What Canada’s 2025 Housing Plans Mean for Your Mortgage Options in B.C.
If you’ve even glanced at the headlines lately, you’ve probably noticed two big themes:
housing supply is tight, and a massive wave of mortgage renewals is coming.
Oh, and the federal government just announced billions in new housing investments in the 2025 budget.
So, what does all this mean if you’re buying, renewing, or refinancing in British Columbia?
Let’s break it down in simple, real-world terms no political fluff, no economist goggles, just what actually matters for you as a homeowner or future homeowner.
A Quick Look at the 2025 Federal Budget: $25 Billion for Housing
The federal government recently unveiled $25 billion in planned housing initiatives over the next five years. The big goal? Tackle Canada’s growing housing shortage.
Experts estimate Canada needs 430,000 to 480,000 new homes every single year just to restore 2019 levels of affordability. Spoiler alert: we’re nowhere near that pace.
So, while the investment is massive and welcome, it doesn’t magically solve the supply crunch, especially not in the Lower Mainland.
But it does signal something important…
The government understands affordability is a priority, and rate & policy decisions will continue revolving around that central issue.
B.C. Market Snapshot: Sales Down, Prices Adjusting
Even with new spending on the horizon, the B.C. housing market is giving mixed signals.
Here’s the quick snapshot:
Home sales dropped around 2% this fall, showing softer demand in some areas.
Prices in Greater Vancouver are down roughly 3% year-over-year, which isn’t a crash, but it’s a noticeable correction.
Inventory is slowly creeping up, but still nowhere close to what buyers need.
This slight cooling won’t last forever, especially with population growth still strong and supply still lagging.
But right now? Buyers have a window of opportunity they haven’t had in years.
60% of Mortgages Renewing in 2025–26: The Renewal Crunch
This is the big story of the year.
Nearly 60% of all Canadian mortgages will come up for renewal in 2025–2026.
Many of those were taken during the ultra-low-rate era (1.5%–2%).
So yes, some people will see higher payments.
But here’s the interesting part…
Rates are expected to stabilize, not spike dramatically.
We’re already seeing the Bank of Canada signalling more stability going forward. That means this renewal wave is challenging, but not catastrophic.
This is where having a broker (Hi) makes all the difference.
Most homeowners automatically accept whatever renewal their lender sends, and that can cost them thousands.
What This Means for You (Based on Your Situation)
If You’re Buying in the Next 6–12 Months
You’re actually in a surprisingly good position:
Prices have eased.
More listings are coming.
Sellers are more negotiable.
And pre-approval rate holds protect you if rates rise again.
This combination doesn’t happen often in Vancouver.
If You Have a Renewal Coming Up
Don’t wait for the renewal letter, talk to me months in advance.
We’ll:
Shop lenders,
Compare fixed vs. variable strategy,
Look at early-renewal options,
And run the numbers to keep your payment manageable.
Most lenders won’t tell you this, but switching can put you in a better position than renewing blindly.
If You’re Refinancing or Consolidating Debt
This is actually a smart time.
With consumer debt climbing and some homeowners feeling the pinch, refinancing is becoming a strategy, not a last resort.
You may:
Lower your total monthly payments
Consolidate high-interest debt
Access equity for renovations or investments
Restructure before renewal pressure hits
If You’re an Investor
The next 18 months are an opportunity window.
Rising supply, softer prices, and stable rental demand can create the perfect environment for long-term buy-and-hold strategies.
And let’s be honest…
A lot of investors regret NOT buying during the dips, not during the peaks.
What’s Coming Next?
Based on the 2025 budget and current market trends, here’s what I expect:
More housing announcements federally and provincially
A gradual easing in qualifying pressure as the market balances
Better opportunities for both first-time buyers and upsizers
A major focus on affordability for renewals
Creative lending programs from banks to retain clients during the renewal crunch
The story of 2025 in Canadian housing will be about transition and stabilization, not chaos.
Final Thoughts
Whether you’re buying, renewing, or planning ahead, this is one of those rare moments where timing, and strategy can save you thousands.
If your mortgage is coming up for renewal within the next 6–12 months, or you want to map out a purchase plan with the newest rules and market trends, I’ve got you covered.
Book a free (below) mortgage strategy session with me today
https://calendly.com/skokomortgages/15min?back=1&month=2025-11
Let’s take advantage of the opportunities this market is offering.
👉 rob@skoko.ca
👉 604-771-4085
👉 skokomortgages.ca
