Heading into 2025, economists and real estate agents believe activity is poised to remain strong amid much lower borrowing costs and more favourable rules for buyers, despite an overall challenging affordability picture.

Introduced in April 2023, the First Home Savings Account (FHSA) is a game-changer for Canadians looking to save for their first home, combining the best features of an RRSP and TFSA.

It was billed as a potential looming crisis for Canada’s economy: the wave of mortgages coming up for renewal in 2025 and 2026 at significantly higher rates than those on offer when the loan was originated. But a spate of central bank interest rate cuts and a dip in fixed rates mean that threat has faded – and renewal pain is unlikely to be a major talking point in 2025, according to market watchers.