As we progress through 2025, Ontario’s mortgage market is experiencing notable shifts. The average home price in Ontario for May 2025 was $861,719, reflecting a 0.2% increase from April 2025’s $859,645, and a 3.2% decrease compared to May 2024.
In London, the average home price stands at $656,432, down 0.6% year-over-year. This trend indicates a buyer’s market, presenting opportunities for prospective homeowners.
Key Mortgage Trends in Ontario
1. Shift Towards Variable-Rate Mortgages
Variable-rate mortgages have gained popularity, comprising 42% of all newly extended mortgages in February 2025. This shift is attributed to expectations of rate cuts and the appeal of lower initial payments.
2. Federal Mortgage Reforms
Effective December 15, 2024, the federal government introduced significant mortgage reforms:
- Increased Insured Mortgage Cap: The cap on insured mortgages was raised from $1 million to $1.5 million, allowing buyers in higher-priced markets to qualify with a minimum 5% down payment.
- Extended Amortization Period: The maximum amortization period for first-time homebuyers and buyers of new builds was expanded to 30 years, reducing monthly payments.
Tips for Homebuyers in London, ON
- Explore Variable-Rate Options: With the increasing popularity of variable-rate mortgages, consider discussing this option with your mortgage broker to determine if it aligns with your financial goals.
- Understand New Amortization Rules: The extended amortization period can make homeownership more affordable. Consult with a mortgage professional to understand how this impacts your monthly payments.
- Stay Informed on Policy Changes: Keep abreast of federal and provincial policy changes that may affect mortgage rates and eligibility criteria.
Connect with Mike Boniferro – Your Local Mortgage Expert
Navigating the mortgage landscape can be complex, but with the right guidance, you can make informed decisions. Mike Boniferro, a seasoned mortgage broker in London, ON, offers personalized advice to help you understand the latest market trends and secure the best mortgage options available.
Call to Action: Schedule a free consultation with Mike Boniferro today to discuss your mortgage needs and explore the best options for you.
Legal Disclaimer: All mortgage products are subject to credit approval and program guidelines. Terms and conditions apply.
About Mike Boniferro – London Mortgage Broker – TLC Mortgage Group – Dominion Lending Centres
Mike Boniferro is a trusted mortgage broker in London, Ontario, affiliated with TLC Mortgage Group – Dominion Lending Centres. With extensive experience in the mortgage industry, Mike provides expert advice and personalized solutions to help clients achieve their homeownership goals.
