Newsletter Subscribe
Enter your email address below and subscribe to our newsletter
Mortgage.Expert
Smarter Mortgages
5 Things To Keep in Mind When Buying a Home This Summer (2025 Edition)
Share your love
📚 Table of Contents
Thinking about buying a home this summer? You’re not alone. The warmer months in Canada typically bring out more buyers—and sellers—which makes it a popular time for home shopping. But before you dive into house tours and bidding wars, there are a few key things you’ll want to keep in mind this year.
Whether it’s your first home or your next one, summer 2025 brings its own unique mix of rising rates, shifting prices, and strong competition. So how can you make the smartest move?
Let’s walk through five things you absolutely need to consider when buying a home this summer in Canada.
1. Interest Rates Are Higher—So Budget With Cushion
📊 2025 Rate Trends vs Affordability Impact
This infographic illustrates the relationship between mortgage rate trends and home affordability in Canada from 2023 to 2025. Dual-line visuals display changes in fixed and variable mortgage rates alongside the percentage of income required to afford an average home.
- 📈 X-Axis: Timeline from 2023 to 2025 (quarterly)
- 🏦 Y-Axis Left: Mortgage interest rates (%)
- 💰 Y-Axis Right: Affordability index (% of household income)
- 🔔 Includes annotations for BoC announcements and rate shifts
Alt text: Infographic showing 2025 mortgage rate trends vs housing affordability in Canada, with rising rates leading to declining affordability.
You’ve probably heard it already, but let’s make it crystal clear: mortgage interest rates are higher than they were even just two years ago. And that means the same home now comes with a bigger monthly mortgage payment than it would have in 2021 or 2022.
For example, a $600,000 mortgage at 2.49% would have cost around $2,680/month. At 5.49% today? You’re looking at nearly $3,700/month.
📊 Sample Monthly Payments at 2.49% vs 5.49%
| Mortgage Amount | 2.49% Rate | 5.49% Rate | Difference |
|---|---|---|---|
| $400,000 | $1,788 | $2,424 | +$636 |
| $600,000 | $2,681 | $3,636 | +$955 |
| $800,000 | $3,575 | $4,848 | +$1,273 |
| $1,000,000 | $4,469 | $6,060 | +$1,591 |
Note: Monthly payments are based on a 25-year amortization. Figures are estimates and exclude taxes, insurance, and other fees.
That’s a big jump—so it’s crucial that you adjust your budget accordingly. Leave room for flexibility, especially if you’re already stretching to meet your down payment. A mortgage preapproval can help you understand how much house you can afford today—not based on old rates, but real ones.
2. Summer Competition Is Hot—Get Preapproved Before You Shop
📌 Infographic – Steps in the Home Buying Journey
This visual will illustrate the full process of purchasing a home in Canada, from budgeting to closing day. It will help first-time buyers understand what to expect, and when to engage with lenders, real estate agents, and legal professionals.
- 🔍 Step 1: Assess Your Budget & Get Pre-Approved
- 🏠 Step 2: Start Your Home Search with a Realtor
- 📑 Step 3: Make an Offer & Secure Financing
- 🛠️ Step 4: Home Inspection & Appraisal
- 🖊️ Step 5: Finalize Your Mortgage
- 🧾 Step 6: Review & Sign Legal Documents
- 📦 Step 7: Closing Day & Move In
✅ This infographic helps demystify the home buying process for new buyers and keeps them on track with a clear visual roadmap.
Summer is peak season in the real estate market. That means more listings… but also more buyers competing for them. If you spot a place you love, you’ll need to be ready to move fast.
That’s where a mortgage preapproval comes in handy. It tells sellers you’re serious—and ready to close. It also gives you a clear price ceiling, so you don’t fall for a house that’s just out of reach.
And remember: listings can move in hours, not days. If a home hits the market in Toronto or Vancouver that’s well-priced, expect multiple offers quickly.
👉 Don’t forget to work with a good mortgage broker to compare lender options before committing!
3. Closing Costs and Moving Expenses Add Up—Plan for the Extras
It’s easy to get caught up in the sticker price of the home, but don’t forget the less obvious costs that come with it:
- Closing costs: These typically add 2% to 5% to your purchase price, covering legal fees, land transfer taxes, title insurance, and more.
- Moving expenses: Whether you’re renting a truck or hiring pros, moving isn’t cheap. Especially during summer when demand is higher.
- Utilities, deposits, and furnishings: New home = new expenses. Even basics like blinds and appliances add up fast.
📌 Infographic – Full Cost Breakdown of Buying a Home in 2025
This visual will show all the upfront and hidden costs involved when purchasing a home in Canada, with 2025 estimates for each major line item. It will be especially useful for first-time buyers planning their budget beyond just the down payment.
- 💰 Down Payment – 5% to 20% of purchase price
- 🧾 Land Transfer Tax – Varies by province (and city in Toronto)
- 🏠 Home Inspection – $300 to $600
- 📋 Appraisal Fee – $300 to $500 (sometimes waived)
- 📑 Legal Fees & Title Insurance – $1,000 to $2,500
- 🛡️ Mortgage Default Insurance – Required for <20% down, varies by CMHC premium
- 🔑 Moving Costs – $500 to $2,000 depending on distance
- 🏦 Mortgage Setup/Admin Fees – Up to $300
- 🏗️ Immediate Repairs or Furniture – Optional but common $2,000–$10,000
🧮 This infographic ensures homebuyers go in with their eyes open—not just about the mortgage, but the full cost of getting the keys.
Bottom line? If you’re buying a $700,000 home, budget at least $15,000–$25,000 extra for all those non-mortgage costs.
4. Be Flexible—and Ready to Act Fast
If you’re waiting for the perfect house that checks every single box, you might miss out. In this market, flexibility is your superpower.
Maybe it’s compromising on lot size to stay in a good school district. Or skipping the ensuite bathroom in exchange for a walkable neighbourhood. Be clear on your dealbreakers—but be open-minded too.
And when that almost-perfect listing does pop up? Don’t wait too long to make an offer.
📌 Visual – “Early Offer Advantage: 48-Hour Window Effect”
This visual will explain how serious buyers gain an edge by submitting offers within the first 48 hours of a listing going live—especially in summer when competition is fierce.
- 🕒 Day 1–2: 60% of offers come in—sellers more receptive, fewer competing bids
- 📉 Day 3–5: Competition increases, bidding wars more likely
- 🚫 Day 6+: Listing cools off, risk of losing interest or price adjustments
- 💡 Pro Tip: Have mortgage preapproval and documents ready before viewing
🏠 This graphic will illustrate the ideal timeline for submitting offers and how acting fast can lead to better negotiations or fewer counterbids.
Some homes in hot regions like Ottawa, Kelowna, or parts of GTA don’t even make it to the weekend before being scooped up.
5. Don’t Lose Sight of Why You’re Buying
With bidding wars, market headlines, and endless paperwork, it’s easy to forget the real reason you’re buying a home.
Are you looking for more space? A yard for your kids? Stability for your family? Investment potential? Whatever your “why” is, hold on to it.
Because when the stress of financing, paperwork, or competition feels overwhelming, your “why” is what will help you keep perspective.
📌 Infographic – “First-Time Buyer Motivation Map: Space, Family, Investment”
This infographic will visualize the top motivations of first-time homebuyers in Canada, helping illustrate emotional and financial factors that influence purchase decisions.
- 🏡 Need for More Space: Outgrowing a condo or apartment, new baby, pets
- 👨👩👧 Family Priorities: Proximity to schools, backyard space, family-friendly neighbourhoods
- 📈 Wealth Building: Long-term investment goals, building equity vs renting
- 🌿 Lifestyle Shift: Remote work flexibility, move to suburbs or smaller cities
- 🔑 Rent Fatigue: Tired of rising rent costs, wanting stability and ownership
📊 This graphic will be structured like a map or radar chart, showing which motivators rank highest among Canadians aged 25–40 entering the housing market in 2025.
Final Thoughts: Summer 2025 May Be the Best Time to Buy—If You’re Prepared
Yes, rates are higher. Yes, competition is intense. But home prices have softened in many regions, giving buyers who are financially ready a chance to step into the market with more leverage.
📌 Line Chart – Home Price Trends from 2021–2025 Across Canada
This chart will depict average home price movements from 2021 to 2025 in key Canadian markets such as Toronto, Vancouver, Calgary, and Halifax.
- X-axis: Years (2021, 2022, 2023, 2024, 2025)
- Y-axis: Average home prices ($ CAD)
- Lines: Separate lines for major cities like Toronto, Vancouver, Montreal, Calgary, Halifax, and national average
- Highlights: Interest rate peaks, government policy changes, and economic slowdowns noted as markers
📈 This visualization will help readers compare how housing affordability evolved differently across provinces, and what to expect in 2025 based on current market trends.
If you’re strategic—get preapproved, work with a broker, and budget smart—you might find that this summer could actually be a golden opportunity to secure your next home.
📌 Need Help With Your Summer 2025 Mortgage?
Whether you’re buying your first home or renewing at a higher rate, our expert advisors are here to guide you every step of the way.
Talk to a Canadian Mortgage Expert Today
