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 25th Mortgage Industry Update

September 25th, 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:
– TransUnion: Number of new mortgages taken up in Q2 fell by 3.4% compared to 2017. Decrease of 18% in millennial borrowers, 22% in Generation Z. Up 18% among baby boomers. Seniors (73-93) up by a surprising 63% (estimates are to help family qualify to due recent stress tests).

– Zoocasa: Year-over-year basis, detached home sales up by 11% in the City of Toronto, 9% in GTA. Semi-detached up 9% in Toronto, 5% in GTA. Condo apartments up 7% in Toronto, 8% in GTA. However, condo townhouses down 25% in Toronto, but up 6% across the GTA.

– Reuters survey: Of 16 real estate market analysts; predicted national home prices will rise by 1.7% this year, slightly slower than 1.9% figure in the June prediction. Values expected to rise another 2.1% next year. Toronto prices predicted to increase by 2% this year, 3% in 2019.

– CREA: Small rise for sales in August, a 0.9% increase month-over-month. Actual (not seasonally-adjusted) activity was down 3.8% year-over-year while prices nationally increased 1% from a year earlier. Sales activity is weaker than most months over the last 4 years.

– Statistics Canada: Mortgage growth in Q2 2018 dropped by 33% ($3.6 billion) compared to 2017, hitting its lowest level since 2003. Consumer credit — credit cards, lines of credit and so forth — also dropped, though by a less steep 6.3%.

– Ipsos poll: 57% of Toronto-area voters say they strongly agree it is increasingly difficult to own a home in the region and 38% say housing affordability is among their top 3 issues going into next month’s municipal election.

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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