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


June 5th Mortgage Industry Update

June 5th, 2018 Mortgage Industry Update

The Bank of Canada announced on May 30th 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:
– Statistics Canada: Economy grew at an annualized pace of 1.3% in Q1, compared with an annual pace of 1.7% in Q1 2017. Lowest rate in nearly two years as housing investment pulled back. Economists had expected growth to come in at an annualized rate of 1.8%.

– CIBC report: Renovation spending is down 5% to an average of $11,000 per planned spend in 2018. 45 per cent of Canadian homeowners planned to renovate this year, down from 48 per cent in 2017. Down to five-year low this year.

– CMHC Q1 report: Insurance claims have decreased by 16%, thanks in part to an improved unemployment rate across the country and significant appreciation to housing values, particularly those in British Columbia. The arrears rate of 0.29% is consistent with last year’s 0.32%.

– Bank of Canada maintains overnight rate target at 1.25%! no change in prime rate present, good news for any variable rate mortgage holders!

– In Q1 2018, home affordability eroded further at the national level, representing the 11th straight quarter of declines, according to National Bank’s latest report.

– Debt management firm MNP poll reveals that 58% of Canadians believe that the only way they will be debt free is if their income increases by 37%. Just 45% of those polled blamed themselves for their non-mortgage debts with 20% saying it is due to external factors.

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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