Familiar challenges are weighing against Canada’s housing outlook this spring, but a prominent broker says a proactive and advice-focused approach can still reap rewards
Canada’s housing market faces a mixed outlook as spring looms into view, with affordability challenges and economic uncertainty likely to keep a lid on homebuying activity in the coming months.
Royal Bank of Canada (RBC) said in an analysis this week that while the affordability picture is improving for buyers across many markets, gains have slowed since mid-2025 – and plenty of cities are also seeing prices rise and purchasing power whittled down.
Mortgage shoppers and industry professionals are also navigating a volatile interest rate outlook that’s seen fixed borrowing costs jump in recent weeks amid oil price shocks and inflation fears as the war in Iran rages on.
Five-year Government of Canada bond yields, which heavily influence fixed rates, have moved lower over the past week, potentially giving borrowers some relief at last.
But even a further dip in interest rates might not change the picture dramatically for homebuyers, according to Michelle Campbell (pictured top), a Toronto-based mortgage broker with Mortgage Architects – A Better Way.
“I think we’re heading into a little bit more of a stable market, but that doesn’t necessarily mean that it’s an easier one,” she told Canadian Mortgage Professional. “Rates might come down a bit over time, but affordability is still the issue here and a lot of clients are really feeling that.”
Resetting expectations and pivoting away from a rate conversation
Getting a grip on where rates are headed next has proven a thankless task for brokers, with the eruption of the Iran conflict throwing the mortgage market another curveball just when it seemed rates might be about to move lower.
The threat of an inflation upsurge appears to have torpedoed chances of a Bank of Canada rate reduction – and market expectations now see a central bank hike as more likely than a cut.
For Campbell, current rate volatility means it makes little sense to dispense predictions to customers on where they’re likely to land in the coming months. Instead, managing borrowers’ expectations and giving them a realistic view on where the market lies is proving the best approach.
“It’s less about trying to predict every rate move and more about staying proactive with people,” she said. “I’m trying to really stay ahead of things – checking in early with clients, having conversations before they feel the pressure, and then just helping them understand what’s coming.
“A big part of my approach right now is just resetting expectations because a lot of people are still comparing today to a few years ago and it’s a very different market now. I have clients saying, ‘Well, my rate is this. Can you get something lower?’ And my answer is, ‘The market has changed. This is what it is.’”
‘Don’t wait’: The value of staying proactive in a down market
Another cohort of potential homebuyers is currently in a position to purchase – but is holding off for a number of reasons, including the expectation that home prices have further to fall.
Campbell’s message to those buyers: don’t wait. “I think people are still not really confident. The Bank of Canada’s announcements are keeping things steady, so the conversations that I’m having are: ‘There’s never going to be a good time. If you’re in a position to buy, then buy. If you can afford it, then just move ahead.’”
Campbell – who is involved in two upcoming Ontario conferences, the CMBA-ON annual conference and trade show on April 23 at Universal Event Space and the Altitude Conference in Muskoka from April 29-May 1 – is also urging brokers not to take a back seat in the current market.
With the borrower conversation having shifted in recent years from a purely rate-focused discussion to one that’s more about guidance, she said brokers are more indispensable than ever.
“I think that the market has made our role more important. When things were easy, people were mostly focused on the rate. And now people are looking for guidance – and that’s where we really get to show our value,” she said.
“I think it’s really important to stay current and relevant, and grow. And staying relevant in a market like this means staying informed, being connected to what’s happening in the industry and continuing to evolve.”
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