This is for educational purposes only; it does not guarantee future performance or serve as financial or tax advice.
📌 Quick Update: BoC Holds Policy Rate at 2.75%
The Bank of Canada just hit pause. On April 16, 2025, the BoC decided not to cut rates, holding steady at 2.75%. This decision surprised many, especially since the odds were nearly 50/50 going in.
Why No Rate Cut?
Even though inflation has cooled to 2.3% — and even lower without shelter costs — the BoC is treading carefully. Tariff risks, weak employment data, and a sluggish economy are all making them hesitate.
They even revised the 2025–2026 growth forecast downward, showing they’re bracing for rougher waters ahead.
What This Means for Real Estate Investors
While a cut would’ve helped mortgage rates sooner, there’s still good news:
- Experts still expect rate cuts later this year — possibly 50 bps by end of Q3.
- Prices in Toronto are already 15–20% below peak and have held steady — signalling we may be near the bottom.
How Smart Investors Are Shifting Strategy
Stop Banking on Big Appreciation
If you’re waiting for Toronto home prices to shoot up 7–8% a year like they did before 2022, you might be waiting a long time. That kind of rapid appreciation isn’t the norm anymore—and it’s not something you should be counting on when making an investment decision. Right now, the market feels stalled. Buyers are holding back, waiting for clarity around things like tariffs, the economy, and even the upcoming election. That hesitation is keeping prices flat, and that trend could stick around for a while.
But here’s the upside: Toronto prices are already down 15–20% from the peak, and they’ve been holding steady for a few years. That tells us the market has likely already done most of its correcting. We’re probably a lot closer to the bottom than the top. When the market does shift again—and it will—it can happen quickly. Buying during this quieter period could give you a head start before the next upswing.
Focus on Rental Income, Not Speculation
This is where smart investors are shifting their focus. Instead of gambling on big price jumps, they’re locking in properties that make sense today based purely on rental income. Cash flow is the name of the game. With interest rates starting to ease up and cap rates staying stable, the cash flow we’re seeing now is stronger than it’s been pre- or post-pandemic. Even if home prices stay flat over the next few years, the rental income alone can still make a deal worthwhile.
The beauty of this approach is that you’re building income from day one. You’re not stuck hoping the market moves in your favour—you’re collecting rents, covering your expenses, and building equity without relying on appreciation. It’s a safer, more stable way to invest, especially in a market as unpredictable as this one.
Renovate Smart in a Stable Market
If you’re planning to do renovations or tackle a value-add project, now is actually a great time. When prices are moving fast, it’s tough to predict what your property will be worth once the work is done. But when prices are flat, that uncertainty drops. You can estimate your after-renovation value with more confidence, which makes budgeting and planning a whole lot easier.
Whether you’re finishing a basement suite or converting a single-family home into a legal triplex, having that price stability helps you take calculated risks. It also gives you time to do the job right—no rushing through renovationss just to catch a rising market. That kind of stability can make a real difference in your bottom line.
The Bottom Line
Uncertainty is high — but that doesn’t mean sit on the sidelines. It means invest smarter. Look at income, real numbers, and long-term fundamentals. At Elevate Realty, that’s exactly how we help our clients win — not through hype, but through real deals that make sense today.
If you’re serious about investing in Toronto multiplex properties, let’s connect. We’ll walk you through real-life case studies and help you strategize the best move for your portfolio.
Here’s what it’s like to start as a client with us:
- Initial Consultation: We’ll talk with you to understand your needs and teach you how to invest wisely in Toronto real estate.
- Market Search & Purchase: We’ll search the market to find the perfect property for you.
- Renovation Support: If the property needs renovations, our trusted contractors are ready to help, and we’ll coach you as you manage the project.
- Leasing and Management: If you need help renting out and managing your property, our leasing and management team is here for you.
Ready to get started? Click on the link below, and let’s start working together!
What Toronto Real Estate Investment Is Right For You?
Check out our complete Toronto real estate investment guide for all the details and real-life examples. If you’re ready to dive in, just book a call with us!
