Harpreet currently provides his services to all of Southern Ontario whether you are a first time homebuyer, sophisticated real estate investor, or any step in between.


(416) 795-1919

Search Mortgage Corp. 100-50 Village Centre Place Mississauga, Ontario, L4Z 1V9 License #: 12652


July 21st Mortgage Industry Update

July 21st, 2015 Mortgage Industry Update

The Bank of Canada announced on July 15th that it’s overnight lending rate will be cut to 0.50%. The prime lending rate at most lending institutions thus decreased to 2.70%. Additionally, most fixed rates have stabilized due to the bond market.

Additionally this week:
– Lenders cut their prime rate to 2.70%, giving us the 5 year promotional variable mortgage rate of 2.00%!!!

– Ratings agency Fitch says that latest BoC interest rate cut underlines its view that Canadian housing market is over-valued by around 20%.

– Financial Post reports Ottawa is undertaking consultations to see whether it should impose new rules to take the heat out of housing market. This may include, but not limited to, higher down payments and shorter amortizations.

– Statistics Canada data says the value of loans underwritten by alternative lenders grew by a staggering 25 per cent over the past 12 months.

– Mortgage market overall in U.S. is growing with $378 billion in home loans originated in Q2, a growth of 21% from Q1 and 27% higher than 2014. Also, total U.S. foreclosure inventory has dropped to its lowest level since 2007, according to new data from CoreLogic; down 27.4% from 2014. U.S builder confidence hits 60, a level not seen since 2005.

– Equifax says that while personal debt climbs, consumers continue to keep up with payments as the national 90+ mortgage delinquency rate remains low at 1.12%. Also, the average debt held by Canadians, excluding mortgages, has increased by 2.7 per cent to $20,910.

Stay tuned for the next update!

For any questions and concerns please do not hesitate to call Harpreet Singh The Mortgage King at (416) 795-1919.


Harpreet Singh

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