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


May 22nd Mortgage Industry Update

May 22nd, 2018 Mortgage Industry Update

The Bank of Canada announced on April 18th that it’s overnight lending rate will remain at 1.25%. The prime rate thus remains at 3.45% with most lenders. The 5 year posted rate has officially increased with the Bank of Canada from 5.14% to 5.34%. Fixed rates are stabilizing from recent changes in the bond market.  

Additionally this week:
– Victoria, B.C. has landed the top spot on Christie’s global list of hottest luxury housing markets. Trailing Victoria on last year’s list are San Diego and Orange County, Calif., followed by Washington D.C. and Paris.

– CREA: National home sales fell 13.9% from 2017 to the lowest level in more than 5 years in April. Declined 2.9% from March. Declines were recorded in about 60% of cities. Number of new homes listed for sale also down 4.8%. Average price down 11% to $495,000 from 2017.

– C.D. Howe Institute: Zoning regulations, development charges and housing limits in and around southern Ontario’s Greenbelt have added around $168,000 to the price of new single-family homes in the Greater Toronto Area between 2007 and 2016.

– RBC Economics: The national rate of home price appreciation has averaged more than 10% in the past 2 years. Predicts a rise in home prices of just 1.8% for 2018 as policy actions and interest rates conspire to cool the market.

– Royal LePage: Sales of luxury houses down 68% year over year, but only 18% compared to 2016 Q1. Condo sales down 28% year over year, but 90% higher than Q1 2016. Luxury condo prices forecasted to rise 10.4% to $1.85M on average by the end of Q1 2019 from $1.7M this year.

– 2018 Canadian Rental Housing Index: Nearly half of Canadian renters are spending more than recommended 30% of income on rent. One in five report spending more than 50%. Ontario average rent costs increased by 20% from 2011 to 2016, while average income increased by only 12%.

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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