With so much noise in the headlines about interest rates, affordability, and market uncertainty, it’s no surprise that many would-be buyers in Montreal are asking themselves:
“Should I buy now or wait it out?”
The truth? There’s no perfect moment to jump in. But in 2025, waiting for the “perfect time” could actually cost you more in the long run.
Here’s a breakdown of what’s really happening—and what you should consider if you’re thinking about buying a home or investment property in Montreal this year.
1. Interest Rates: Not as Bad as They Seem
While rates remain higher than the ultra-low levels of 2021–2022, they’ve stabilized—and the Bank of Canada is approaching policy shifts with caution.
If you’re waiting for a massive rate drop, you may be waiting a long time.
Why that matters:
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Home prices are rising quickly in many Montreal neighbourhoods.
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Even a 1% rate drop could trigger a wave of demand that we cannot meet with current inventory levels, driving prices up.
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Buying now (even at a slightly higher rate than you’d like) lets you lock in a property before competition heats up.
And remember: you can always refinance when rates go down. You can’t go back in time to pay less for the same property.
2. Inventory is Low—but Competition is Milder
Montreal is still dealing with a housing supply crunch, especially in family-friendly boroughs and for income properties. But 2025 has brought a bit of breathing room compared to the frenzied pace of 2021 and 2022.
That means:
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You have more time to make decisions (the clock is ticking though!)
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Fewer bidding wars, although they are making a comeback
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More room to negotiate on price, conditions, and inclusions
In other words, you may not be getting a steal—but you’re not in a frenzy either.
3. Rents Are Soaring
If you’re currently renting, take note: Montreal rents have surged, especially for larger units and those near transit.
Owning—even with today’s rates—can offer:
- Stability in monthly payments
- Equity building over time
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Potential income from a rental unit or roommate
For many buyers, especially first-timers, house hacking (living in one unit and renting another) is one of the smartest paths forward in this market.
4. Price Growth is Gradual—but It’s There
Montreal doesn’t experience wild swings like Vancouver or Toronto, which keeps us safer from negative dips. But even with higher interest rates, home values are quietly climbing again in key areas.
Neighbourhoods like Rosemont, Verdun, Lachine, and parts of Laval are seeing steady appreciation.
Waiting a year could mean:
- Paying more for the same property
- Losing leverage in negotiations
- Missing out on early appreciation gains
5. There’s No One-Size-Fits-All Answer
Your decision should always be based on:
- Your financial stability
- Your job security and life plans
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Your comfort with mortgage payments today, not what you hope rates will be next year
A good broker or advisor will help you weigh your options—not pressure you to buy before you’re ready.
The Bottom Line:
If you’re financially ready, 2025 is still a smart time to buy in Montreal.
Interest rates may not be ideal—but market conditions offer balance, opportunity, and long-term upside for buyers who are prepared.
Still unsure? Let’s talk. I’ll walk you through what your options look like right now—no pressure, just facts.
