Approval volumes down 12% nationwide — and buyers are feeling the chill.
Canada’s housing market just got a fresh pulse check — and it’s running cooler than expected.

According to preliminary data from the Canada Mortgage and Housing Corporation (CMHC), national mortgage approval volumes dropped 12% in June compared to May. That’s one of the sharpest month-over-month dips in the past year, and a clear sign that high rates are taking their toll.

“Buyers are hitting pause,” said a GTA mortgage broker. “Between high qualifying rates and buyer fatigue, we’re seeing slower pipelines even in the busy season.”

The slowdown isn’t just isolated to one region. Markets like Toronto, Calgary, and Halifax all posted lower approval activity — despite stable listing volumes. Brokers say even well-qualified borrowers are holding back, hoping for lower rates in late summer.

Why This Matters

CMHC’s monthly lending volume reflects actual mortgage commitments — not just rate holds or preapprovals. When that number drops, it often signals:

Fewer active buyers in the market
Higher rejection rates due to stricter stress test rules
Increased uncertainty around timing purchases

What’s driving it? Experts point to a mix of rate hold fatigue, stretched affordability, and ongoing sticker shock — even as home prices stabilize in many cities.

What Buyers Should Do Now

If you’re in the early stages of home shopping, this cooling period could work in your favour. Fewer buyers = less competition = more room to negotiate.
But don’t assume lenders are easing up — they’re not. In fact, some are tightening debt servicing requirements and asking for more paperwork than ever.
That’s why getting pre-approved now — with a full document review — is essential if you plan to strike when rates dip later this year.

“While borrowing has slowed, housing activity is still growing — largely on the rental side, according to CMHC’s latest starts data.”

📉 Monthly Mortgage Approval Volume – CMHC Jan to June 2025

Mortgage approval volumes stayed relatively flat from January to May, then dipped sharply by 12% in June — a sign that even otherwise qualified buyers are pausing or being declined.

📋 4 Reasons Approval Volumes Are Slipping in 2025

📉 Buyer fatigue: Rate holds are expiring without action as Canadians delay major decisions.
🧾 Tougher document scrutiny: Lenders are requesting more income proof, especially for self-employed applicants.
🏷️ High qualifying rates: Stress test rates still sit around 6.5%+, pricing many out even if rates drop.
📦 Limited affordability gains: Home prices have cooled, but not enough to offset cost-of-living increases.

These headwinds are cooling mortgage demand — but smart buyers can use the lull to their advantage.

📌 Talk to a Mortgage Expert

Market conditions are shifting — and approval timelines are getting tighter. Get fully pre-approved now so you’re ready to act when rates or prices move.

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