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


January 30th Mortgage Industry Update

January 30th, 2018 Mortgage Industry Update

The Bank of Canada announced on January 17th that it’s overnight lending rate will increase to 1.25% from 1.00%. The prime rate has thus increased to 3.45% with most lenders. The 5 year posted rate has also changed to 5.14% with most lenders.

Additionally this week:
– Fitch report gives Canada a stable/negative rating as low arrears clash with rising house prices which are at risk of declining. It’s forecast for 2018 is for prices to rise 5% (around half of 2017’s increase) and for mortgage arrears to remain at the 0.3% level of 2017.

– TREB: There was a 9.8% year-over-year rise in new condo listings in the GTA in Q4 2017 but the market remained relatively tight. Sales down 15.4% compared to Q4 2016 with 5,773 units sold through the MLS. Average selling price up by 17.9%, up to $515,816.

– CREA: Transactions climbed 4.5% from November to 45,976 in December., Up 9% over the past two months. This represented the biggest two-month gain since 2009, helping make 2017 the second strongest market ever.

– According to a 2017 national survey conducted by Leger on behalf of the Financial Planning Standards Council, 37 per cent of Canadian parents intend to assist their children with the purchase of their first home.

– Bank of Canada indicates that it’s in no rush to pursue aggressive interest rate hikes, citing “important unknowns” such as the future of NAFTA as it raised borrowing costs for the third time since July.

– In its latest study, real estate portal Point2 Homes found that quality employment and housing affordability are two of the most important factors that push Canadian millennials toward certain metropolitan markets.

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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