Is December 2025 a Good Time to Buy an Investment Property?

December is traditionally a slower month for real estate — but for investors, December 2025 may offer one of the best buying windows in years. With easing mortgage rates, motivated sellers, stabilizing prices, and strong rental demand, investors willing to act before year-end can unlock meaningful opportunities.

Here’s a full breakdown of whether December 2025 is a smart time to buy an investment property in Canada.

1. Mortgage Rates Are Improving for Investors

Throughout 2025, declining bond yields and Bank of Canada rate cuts have pushed mortgage rates lower.

Typical Investor Rates (Late 2025):

• Fixed: ~4.29%–4.99%

• Variable: ~4.25%–5.25%

While investment rates are higher than owner-occupied mortgages, they’re far more manageable than 2023–2024 levels — improving cash flow projections.

2. Less Competition Means Better Deals

Many buyers pause their search during the holidays — especially end-users.

For investors, this means:

• Fewer bidding wars

• More off-market negotiations

• Better pricing leverage

• Easier inclusion of conditions

Sellers listing in December often want a clean year-end exit.

3. Sellers Are More Motivated Before Year-End

Common seller motivations in December include:

• Tax planning

• Avoiding winter carrying costs

• Liquidating underperforming assets

• Relocating for work

This creates opportunities to negotiate:

• Below-asking prices

• Repair credits

• Flexible closings

Motivation is your leverage.

4. Rental Demand Remains Strong Heading Into 2026

Canada’s rental market continues to face:

• Population growth

• Limited new housing supply

• Rising rents in many regions

Investors buying in December can benefit from:

• January rental turnover

• Strong leasing demand

• Improving cash flow within months

Cities like Calgary, Edmonton, London, Halifax, and Ottawa remain especially attractive.

5. Stabilizing Prices Improve Entry Timing

After years of volatility, many markets are stabilizing.

December 2025 trends show:

• Slower price declines

• Balanced inventory levels

• More predictable valuations

Stability reduces downside risk and improves underwriting confidence.

6. Year-End Financing Incentives Improve ROI

Lenders often offer:

• Discounted investor rates

• Cash-back promotions

• Reduced fees

• Faster approvals

These incentives can materially improve returns.

7. Tax Planning Benefits for Investors

Buying before December 31 may allow:

• Partial-year depreciation claims

• Interest expense deductions

• Repair write-offs

• Capital planning advantages

Always consult a tax professional — but timing can matter.

8. Risks to Consider Before Buying in December

Investors should still weigh:

• Winter inspection challenges

• Limited inventory in some markets

• Potential for further rate cuts in 2026

• Higher insurance and maintenance costs in winter

Proper due diligence remains essential.

Final Verdict

Yes — December 2025 can be an excellent time to buy an investment property for investors focused on value, negotiation, and long-term cash flow. With improving financing conditions, motivated sellers, and strong rental demand, the year-end window offers opportunities rarely available in peak seasons.

If you’d like, I can turn this into a RateShop investor guide, cash-flow calculator, or market comparison report.