The Canadian real estate market in 2025 is showing modest growth after a period of volatility. Home prices hold steady across most regions, although changes in sales activity and stricter mortgage rules continue to impact both buyers and sellers.
The Market in 2025: Numbers and Trends
As of May 2025, the average home price is $691,299. This is a 1.7 percent increase over April. Compared to May 2024, it marks a 1.1 percent decrease as the market adjusts after recent interest rate swings. The typical home benchmark price is $701,800. This shows almost no change from the previous month, although it is 3.5 percent lower than a year earlier.
Sales are starting to show activity again, with a 3.6 percent seasonally adjusted increase from April to May. This is the first monthly increase since late 2024. Most of this sales rebound comes from the Greater Toronto Area, Calgary, and Ottawa. New listings are up by 3.1 percent on the month, which means more options for buyers. However, actual sales volumes are still 4.3 percent below May 2024 levels.
Supply is improving, with active listings now 13.2 percent higher than a year ago. More sellers are entering the market, yet many buyers remain cautious as prices and borrowing costs stay high.
Regional Differences: What to Know
In Canada’s largest cities, buyers face different choices and barriers than in smaller centers.
- In Vancouver and Toronto, there is a much higher demand than supply. Homes here are expensive, and competition remains strong. Prices have stopped rising quickly but have not become much more affordable.
- Montreal buyers see more stable prices. Although demand is steady, there are pockets of relative affordability.
- Calgary’s market is stronger than most. The city draws people from other provinces who want lower prices and more options, helped by a stronger local economy.
- Halifax offers lower home prices and fewer bidding wars, although prices are edging upward as more buyers arrive.
Examining Local Offerings and Market Nuances
Comparing homes in different provinces, such as a detached house in Montreal, a townhouse in Calgary, or a condo in Halifax, can highlight differences in affordability and taxes. Those researching options often look through specific listings with a precise search, such as Toronto homes for sale, to gauge property types and price ranges.
Regional trends also affect how quickly properties move and the kinds of fees involved. Some areas have stricter regulations for non-residents or extra taxes that do not apply in other parts of Canada. Checking current listings and legal details by region is important before making an offer.
First-Time Buyer Incentives
There are several programs for people buying their first home.
- The Home Buyers’ Plan allows withdrawals of up to $35,000 from registered retirement savings for a down payment. The buyer must repay this amount within 15 years, starting repayments after two years.
- The Home Buyers’ Tax Credit is a $10,000 non-refundable federal tax credit. This can lower the buyer’s tax bill by up to $1,500.
- The First-Time Home Buyer Incentive offers 5 to 10 percent of the home’s price through a shared equity plan. This reduces the size of the monthly mortgage payment but does not raise the down payment amount.
To qualify for these help programs, people must be Canadian residents and either buying their first home or re-entering the market after a break. These programs require careful filing with both mortgage lenders and the Canada Revenue Agency. Proof of eligibility and correct timing are both important.
Buying as a Non-Resident: Rules and Taxes
Many non-residents face tight controls when they try to buy homes in Canada. The federal rules brought in for 2023 have been extended, restricting most non-Canadian residents from buying homes in major cities. Exceptions are granted to permanent residents, some work and study permit holders, and those buying outside key urban regions.
Eligible foreign buyers need a Non-Resident Tax Number and must pay the Non-Resident Speculation Tax, which in Ontario and British Columbia adds up to 25 percent to the purchase price. Non-residents should consult a real estate lawyer who understands both federal and provincial law, as the penalties for mistakes are severe.
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Mortgage Choices and What Lenders Require
Buying property with a mortgage means dealing with both financial paperwork and minimum deposit requirements.
- Canadian citizens and permanent residents can buy with at least 5 percent down on homes up to $500,000. For homes above $500,000, a higher down payment applies.
- Non-residents usually need a down payment of at least 35 percent.
- The minimum credit score for most buyers is 680, although non-residents may find that lenders ask for more.
- Mortgage insurance is required for down payments below 20 percent, but non-residents are not eligible for this insurance. That means larger deposit amounts are needed.
- Lenders will ask for proof of income, savings, and employment. Non-residents must also supply extra documentation such as valid work or study permits.
Costs That Buyers Often Miss
Several extra costs come with buying a home.
- Most provinces add a land transfer tax, and cities like Toronto charge both a provincial and a local tax on property sales.
- Legal fees and closing costs often run between 1.5 percent and 4 percent of the home’s price.
- Currency swings can affect the cost for non-resident buyers, especially if using foreign funds.
- Property insurance costs are rising in parts of Canada with floods, fires, or regulatory changes.
- Buyers of condominiums or strata homes need to prepare for regular maintenance fees and occasional large bills for repairs.
- Home inspection and warranty fees are common, especially for older homes. Skipping thorough checks can lead to unexpected repair costs.
Final Word
Home buyers in Canada in 2025 must pay close attention to prices, rules, and costs. Incentives can help, but the price of entry remains high. Each region and buyer type faces specific rules, so clear planning and reliable advice are essential when making a purchase.
