Toronto — Mortgage relief from the Bank of Canada’s recent easing is nudging nervous buyers back toward the Greater Toronto Area market, but affordability remains the defining constraint for many. In mid-September, the Bank trimmed its policy rate by 25 basis points to 2.50%, a move lenders say has already filtered into more competitive variable and short-term fixed mortgage offers.

That incremental easing has coincided with signs of renewed activity across the GTA: listings have tightened in some neighbourhoods while sales showed month-over-month gains in early October, leaving the average GTA home price hovering around the $1.05-million mark — still well above what many first-time buyers can comfortably finance. Market watchers say lower headline rates are helping, but the gap between incomes and local prices keeps weekly mortgage payments high for marginal buyers.

Lenders and brokers are watching two forces closely: how fast banks pass cuts through to borrowers, and whether bond markets keep supporting lower long-term rates. Several major Canadian lenders and forecasters expect further easing to 2.25% by late 2025, which would likely lower five-year fixed and variable rates modestly; however, labile global conditions and domestic data could cause those expectations to shift quickly. Borrowers weighing renewals or purchases are being urged to lock in competitive terms if they expect rates to reverse.

Policy experts caution that while rate cuts ease monthly payments, they don’t solve the underlying affordability problem in high-cost centres like Toronto — limited supply, strong immigration and high construction costs keep price pressure intact. CMHC’s recent supply and market reports underline that ground-oriented housing growth is only modest and that structural shortages in high-demand cities will continue to influence prices even as borrowing costs fall.

For prospective GTA buyers, the takeaway is pragmatic: easing rates improve purchasing power a bit, but many will still face tough down-payment and qualification hurdles. Mortgage brokers suggest shopping multiple lenders, considering longer amortizations carefully, and running scenarios for both further cuts and potential re-acceleration of rates — actions that can make the difference between a manageable mortgage and one that strains household finances.