In 2025, the Canadian real estate market faces a paradox: strong buyer demand coupled with limited supply, all while traditional financial institutions are becoming increasingly cautious with mortgage lending.
A Real Estate Market in Full Swing
Despite economic uncertainties, Quebec’s real estate market continues to grow. According to data from the Quebec Professional Association of Real Estate Brokers (QPAREB), the median property price increased by 7.6% in the first quarter of 2025 compared to the same period in 2024. Quebec City stands out in particular, recording a 17% price increase — the highest in the country.
This growth is driven by limited supply. The number of property listings decreased by 4% in the first quarter of 2025, reaching 34,479 listings — 29% below the historical average for this time of year.
At the same time, residential sales totalled 11,847 transactions in the first quarter of 2025, a 15% increase compared to the same period in 2024.
Sustained Demand Despite Obstacles
According to a recent study by NerdWallet Canada, more than half of Canadians (54%) are considering buying a home within the next five years, despite growing financial pressures.
This persistent intention to buy reflects Canadians’ optimism — or their strong belief that homeownership remains a pillar of financial stability, even during uncertain times.
However, strong demand is running into limited supply.
The shortage of available housing, worsened by a slowdown in new construction projects — particularly condominiums — is exacerbating the situation.
A Reuters report highlights that pre-construction condo sales in cities like Toronto have fallen to historically low levels, hampering the financing needed for new housing development.
Banks Growing Increasingly Cautious
Alongside this market dynamic, major Canadian banks are adopting a more conservative approach to mortgage lending.
Despite declining interest rates, financial institutions remain reluctant to approve loans, especially for borrowers with higher-risk profiles.
This caution is driven by rising loan defaults and concerns over economic stability.
A Reuters article notes that Canadian banks have been forced to set aside loan loss provisions due to the increase in defaults, particularly in the mortgage sector.
As a result, banks are tightening their credit criteria, making it even harder for many potential buyers to access financing.
Capital Express: A Strategic Ally for Brokers, Financial Intermediaries, and Buyers
In the face of these challenges, mortgage brokers and real estate professionals are increasingly seeking alternative solutions to meet their clients’ needs.
This is where Capital Express positions itself as a preferred partner.
As a key player in the alternative lending and private mortgage sector in Quebec, Capital Express offers structured private mortgages designed to meet the unique needs of homeowners, investors, and developers — particularly across Quebec and the Ottawa region.
The benefits of partnering with Capital Express include:
- Flexible Eligibility Criteria: Unlike traditional banks, Capital Express assesses each application individually, focusing on the borrower’s overall situation rather than relying solely on a credit score.
- Fast Processing: Understanding the urgency of many real estate transactions, Capital Express is committed to processing financing requests quickly, helping brokers close deals without delay.
- Local Expertise: With deep knowledge of the Quebec real estate market, Capital Express provides solutions tailored to regional realities.
This client-focused approach and service flexibility make Capital Express a preferred partner for brokers looking to offer alternative financing options to their clients.
Conclusion
The Canadian real estate market in 2025 is marked by strong demand, limited supply, and increasing caution from traditional financial institutions.
In this context, brokers and buyers must explore alternative financing solutions to successfully realize their real estate projects.
Capital Express stands out as a strategic ally, offering flexible financing solutions tailored to the specific needs of each client.
By collaborating with partners like Capital Express, brokers can not only meet their clients’ expectations but also set themselves apart in an increasingly competitive market.
