Top Mortgage Trends to Watch in 2025: What Ontario Buyers Should Expect
The mortgage market in 2025 isn’t what it used to be. If you’re buying a home, renewing a mortgage, or investing in property in Ontario this year, the rules of the game have changed—and staying ahead means understanding the shifts that matter.
Here are five key mortgage trends shaping the Ontario market right now, and what they could mean for you.
1. More Canadians Are Turning to Mortgage Brokers
With over 60% of Canadians renewing mortgages this year, borrowers are realizing the big banks aren’t their only option. More people are working with brokers who have access to dozens of lenders—not just one.
The benefit? Better rates, more flexible terms, and customized strategies.
Brokers also help navigate challenges like self-employment, credit issues, or non-traditional income—all of which are more common in today’s economy.
2. Shorter-Term Fixed Mortgages Are Gaining Popularity
Traditionally, the 5-year fixed mortgage was the go-to in Canada. But in 2025, more buyers are opting for 1- to 3-year terms.
Why?
- Fixed rates remain high compared to recent years.
- Many buyers believe rates will decline within the next 12 to 24 months.
- A shorter term allows them to lock in something now—and refinance later without large penalties.
This approach offers more flexibility if interest rates drop, without fully exposing you to variable-rate volatility.
3. Alternative Lenders Are Becoming Mainstream
The rise in gig work, freelancing, and small business ownership means more people don’t fit the traditional borrower mold. That’s why alternative lenders (often called B-lenders) are stepping into the spotlight.
These lenders:
- Accept varied forms of income
- Look at bank statements, not just tax returns
- Provide mortgage solutions for buyers with lower credit scores or unique situations
While their rates may be slightly higher than big banks, they offer access and approval where others can’t.
4. Prepayment Strategy Is Back in Focus
With higher rates, homeowners are now thinking more carefully about how to reduce their interest over time. This is bringing prepayment privileges into the spotlight again.
Buyers are asking:
- How much can I pay extra each year?
- Can I increase my monthly payments later?
- What are the penalties if I want to get out early?
As a result, borrowers are looking beyond just the rate and into the full flexibility of the mortgage product.
5. Mortgage Stress Test Still a Barrier for Many
Despite calls for reform, the mortgage stress test remains unchanged. Borrowers still have to qualify at either their contract rate + 2% or the Bank of Canada benchmark rate—whichever is higher.
In a high-rate environment, this continues to limit affordability, especially for:
- First-time buyers
- Buyers in expensive markets like Toronto and Mississauga
- Self-employed individuals who write off income on taxes
Buyers are now leaning more on brokers to navigate around these barriers with better planning and creative structuring.
What This Means for Ontario Borrowers
If you’re buying, renewing, or refinancing in 2025, the landscape looks different from even a year ago. Rate comparison is no longer enough. Strategy matters more than ever.
At Anton Mortgage, we help clients not just get approved—but get approved with a plan that matches where they are today and where they want to be tomorrow.
Want to understand how these trends affect your next mortgage decision? Start a conversation with us