A significant shift is on the horizon for the GTA’s housing market. The federal government’s plan to cut 16,000 public service positions by 2029, 40,000 below its 2024 peak, raises concerns about demand and mortgage defaults. While the layoffs are nationwide, the impact could be felt acutely in areas like Ottawa-Gatineau, but the ripples will reach the GTA.
Experts suggest job losses correlate with increased mortgage arrears. BMO economists also point to softer population growth impacting housing and rental markets. Longer mortgage amortizations, with over 60% of new uninsured mortgages exceeding 25 years in mid-2025, highlight affordability struggles. Rate cuts may offer some relief, but the convergence of layoffs, slower population growth, and elevated rates puts pressure on borrowers. The risk now sits squarely on borrowers’ incomes.
For a deeper dive into the potential consequences, read the original article on mpamag.com.
Source: Read the original article
