Should You Sell or Refinance Your Home in Ontario This Winter (2025)?

Where Ontario’s Housing Market Stands Right Now

• Falling/softening demand: Home sales in Ontario have declined compared to last year.

• Rising inventory: More homes are on the market, giving buyers more choices and reducing seller leverage.

• Prices are soft to slightly declining in many areas: Average home prices in Ontario have edged downward.

• Interest rates are high but expected to ease somewhat: Rates are still elevated, though modest drops are expected.

• Winter is typically a slower season for real estate: Fewer buyers, lower activity, and often longer selling times.

Bank of Canada Cuts Interest Rate to 2.5%

On September 17, 2025, the Bank of Canada reduced its key policy interest rate by 25 basis points to 2.5%, the lowest level in three years. This move was driven by increasing concerns over a deteriorating job market, reduced inflation pressures, and lingering economic uncertainties fueled by U.S. tariffs. The central bank had previously paused rate cuts in March after aggressive easing over the prior nine months. Analysts expect a potential further cut in October, with interest rates possibly bottoming at 2.25% Reuters.

Sell vs. Refinance: Pros & Cons

Selling:

• Potential returns: You may get a decent price, but with soft demand, your negotiating power could be limited. Keep in mind selling costs like commissions and moving expenses.

• Interest rates: Selling means you may face high mortgage rates if you plan to buy again.

• Timing & seasonality: Winter tends to be slower, so homes may sit longer unless priced well.

• Costs & risks: Transaction costs, possible lower sale price, and the need to secure new housing.

• Flexibility & future plans: Selling gives freedom if you want to move or downsize.

Refinancing:

• Potential returns: Could lower payments, free up equity, or change terms. Fees apply, and savings depend on rates and equity.

• Interest rates: Refinancing may help, though current rates are still relatively high.

• Timing & seasonality: Not seasonal—more of a financial decision.

• Costs & risks: Fees and penalties apply; refinancing could extend your debt term.

• Flexibility & future plans: Offers stability if you plan to stay long-term.

Factors That Push Toward Selling

• You need to move soon (work, downsizing, lifestyle changes).

• You have significant equity and want to cash out.

• You anticipate the market softening further in your area.

• High mortgage payments are unsustainable.

• You want to take advantage of demand in your neighbourhood.

Factors That Push Toward Refinancing

• You plan to stay in your home long-term.

• You have strong credit and equity to qualify for good terms.

• You want to reduce monthly payments or consolidate debts.

• You want stability and to avoid moving costs.

• You believe rates may drop further and you could refinance again later.

Some Questions to Ask Yourself

• What is your timeline—do you need to move soon or can you wait?

• How much equity do you have, and what are your remaining mortgage obligations?

• What are current mortgage rates and penalties for your mortgage?

• How strong is demand in your specific neighbourhood?

• What are your long-term housing plans—buying, downsizing, or renting?

Selling Fast vs. Refinancing

If refinancing is proving difficult and you don’t want to wait out the market, selling quickly may be your best option.

If you do want to sell, a great way to sell fast is through sellyourpropertyinontario.ca. We specialize in buying properties quickly, making the process smooth and hassle-free so you can move on without delay.