As temperatures dip in Sault Ste. Marie and Elliot Lake, it’s a fitting reminder that Canada’s housing market is also facing a season of change. With interest rates holding firm and home sales slowing, many homeowners across the country are wondering what it means for their mortgages—and their long-term plans.
Whether you’re eyeing your next property or just trying to make sense of rising borrowing costs, now is a good time to assess where Canada’s real estate economy stands heading into the final stretch of 2024. If you’re unsure what your next move should be, consider checking today’s best mortgage rates.
Interest Rates: No Hikes, But No Cuts Either
The Bank of Canada (BoC) opted to hold its overnight lending rate steady at 5%, marking the fourth straight time they’ve hit the pause button. While this move signals some stability, it also implies that inflation isn’t cooling fast enough to warrant a cut.
Although the central bank hasn’t hiked rates lately, the higher cost of borrowing remains. For homeowners coming up for renewal in 2024, this is no small concern. According to CMHC, roughly 45% of existing mortgages will renew by the end of 2026, many at much higher rates than they were first signed on at. This could mean payments jumping by hundreds of dollars a month.
For those carrying variable-rate mortgages, the pain hit earlier, and the current pause might feel like the smallest of reliefs. But with policymakers remaining cautious, borrowers shouldn’t expect a slash in rates until at least mid-2025. Staying informed on where variable rate trends are heading could be key to making a smart switch now or later.
Housing Sales Dip Even as Listings Rise
In many local markets—including northern Ontario towns like Sault Ste. Marie and Elliot Lake—we’re seeing more listings pop up, but fewer purchases closing. According to the Canadian Real Estate Association (CREA), national home sales fell by 1.9% in October from the month before, even as new listings ticked up by 2.3%.
This signals a power shift from sellers to buyers. With more inventory and fewer bidding wars, those entering the market may finally be able to negotiate more competitive deals. That said, affordability remains a challenge—especially when mortgage stress testing continues to limit how much buyers can qualify for.
If you’ve been holding out for a better time to buy, it’s worth re-evaluating your options using a mortgage calculator to pinpoint your actual buying power in today’s market. Prices may be softer in some regions, but higher interest rates still take a big bite out of monthly budgets.
Home Equity May Be Your Secret Weapon
With rising property values over the past decade, many Canadian homeowners are sitting on significant home equity—even if the current market is a bit cooler. Tapping into that equity via refinancing or a HELOC might offer some financial flexibility during unpredictable times.
This can be especially valuable for those needing to consolidate high-interest debt, manage business expenses, or fund home renovations. The key is understanding if your home equity strategy aligns with your long-term financial goals. It’s not one-size-fits-all, and missteps can cost you.
If you’re nearing retirement and thinking about downsizing or unlocking the value of your home, a reverse mortgage could be worth discussing with your financial advisor. Used wisely, it can provide a stable supplement to pension income or help extend your retirement savings.
The Pulse of the Northern Ontario Market
While national trends often grab headlines, smaller markets like Sault Ste. Marie and Elliot Lake move differently. These regions continue to offer some of the most affordable real estate in Ontario, with average home prices still sitting well below the provincial benchmark of $855,990 (as of October 2023).
For families looking to relocate or invest in secondary properties, these quieter communities offer great value. However, slower job growth and limited housing stock are ongoing challenges. That’s why getting the right financing matters even more in less competitive markets. For example, if you’re building a custom home or developing multi-unit housing in these areas, a construction mortgage could provide a flexible way to align funding with your build timeline.
And even in places where homes are more affordable, the rising cost of borrowing adds pressure to household budgets. With utility bills, groceries, and gas all moving up, even a modest mortgage can feel expensive in 2024.
Final Thoughts: Eyes on the Long Game
As frigid weather returns to Canada’s northern towns, many are wondering if the housing freeze will continue. While we may not see a full thaw until rates begin to fall, there’s reason to stay optimistic—especially for those who plan, prepare, and get good advice.
Whether you’re renewing soon, buying for the first time, or just mapping out your next move, speaking with a licensed mortgage broker can help uncover your best path forward. At Unrate, we’re here to help you navigate the ups and downs with clear, realistic advice every step of the way.
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