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


September 18th Mortgage Industry Update

September 18th, 2018 Mortgage Industry Update

The Bank of Canada announced on September 5th that it’s overnight lending rate will remain at 1.50%. The prime rate thus remains 3.70%. Good news for variable rate mortgage holders as they can expect no changes to their rates! The common prediction currently stands at another rate increase for October’s meeting.

Additionally this week:
– Knight Frank’s quarterly global house price index: Just last year, Canada ranked 4th in a widely cited global home price ranking. But after the introduction of a series of policy measures, it’s now fallen all the way to 37th place from 57 countries. In Q1 2018, Canada ranked 15th.

– Oxford Economics: Housing market dangers are “especially acute” in Australia, Hong Kong, Canada and Sweden. “In all four, valuations are very elevated, there has been a lengthy housing boom, debt levels are high and there is a significant share of floating rate debt”.

– Investment in Canadian commercial real estate has reached new record high, beating previous record set in Q1 2017. Q2 2018 saw $16.5B of transactions, 38% above previous high of $11.97B and 105% above 5-year quarterly average. Half-year total also a new record high at $26.8B.

– StatsCan: Economy suffered an unexpected loss of 92,000 part-time jobs in August, offsetting a 40,400 increase in full-time employment. Represented second largest month-over-month decline since the great recession. National unemployment rate up to 6%, from July’s 5.8%.

– Point2 Homes: For the first time in nearly 5 decades, home ownership across Canada fell as 11/13 provinces saw their rates shrinking since the last census in 2011. 2016 census found that the ownership rate nationwide declined by 1.2%, down to 67.8%. Renting up to 32.2% from 31%.

– TREB: Sales jumped 8.5% to 6,839 in August from 2017. Average prices up 4.7% to $765,270. Detached homes down 1.9% to $914,900. Condo apartments up 9.9% to $505,500. New listings up 6% to 12,166. Active listings up 8.8% to 17,864. Detached-house sales increased 19.2% in the 905 areas outside of Toronto to $907,780 on average in August as compared to 2017. 12.3% jump in the City of Toronto, to $1.24 million on average. Toronto-area resale condo sales only up 0.7% year over year.

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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