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


February 13th Mortgage Industry Update

February 13th, 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:
– RE/MAX INTEGRA report: Home prices in the GTA and the Hamilton-Burlington region more than doubled in the last 10 years, while the average price of a home rose 81 per cent in Kitchener-Waterloo, 63 per cent in London-St. Thomas, 62 per cent in Windsor and 44 per cent in Ottawa.

– CMHC: New mortgage rules intended to cool hot markets are “working better than hoped.” However, housing markets remain out of balance with recent price spikes driven by large single family homes at the expense of much needed rental stock.

– Statistics Canada: New Canadian home prices stalled in December for the first time in almost three years, another signal that the boom in Toronto has been slowed by higher interest rates and tougher rules for buyers.

– CMHC: In Toronto and Vancouver, non-permanent residents represented nearly 10% of buyers under the age of 25 who were issued mortgages in 2016, suggesting some “may be receiving parental support”.From 2014 to 2016, mortgages issued to non-permanent residents saw an increase in most major cities. In 2016, accounted for 3.9% of mortgages issued in Vancouver, same as 2015. In Toronto, the share of mortgages increased to 2.7% in 2016 compared to 2.1% in 2015.

– TREB: Home sales in Toronto fell 22% in January from 2017. Average price was down 4.1% (to $736,783 from $735,088 in December,). Average selling price of a detached home in the 416 area code was $1,283,981 in January, a decline of 3.9% from the same month a year earlier. Condominiums went for $543,279 — increase of 15.1%.

– Urbanation: Sales of new condos in Toronto will probably drop in 2018 from last year’s record high (35k+, up 30% from 2016). Developers facing rising costs, investor demand slipping. Asking prices for available condos rose 35% in Q4 from 2016, to an average of $876 per sq foot.

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

Leave a comment

Your email address will not be published. Required fields are marked *