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


August 20th Mortgage Industry Update

August 20th, 2019 Mortgage Industry Update

The Bank of Canada announced on July 10th that it’s overnight lending rate will remain at 1.75%. The prime rate remains 3.95%. The common prediction currently stands that the Bank of Canada will likely keep rates consistent for the remainder of 2019, with the small possibility of a rate decrease.

Additionally this week:
– CMHC: Homeownership rate among 65+ in the Toronto metro area was 75.1% as of 2016, up from 73.4% in 2006. Seniors owned 1/4 Toronto homes in 2016, versus 1/5 in the previous decade. Seniors holding onto homes for longer periods of time, making it harder for first time buyers.

– CREA: 3.5% rise in Canadian home sales in July compared to June, up 12.6% from 2018; fifth consecutive monthly increase. Sales 15% above 6-year low recorded back in February. National prices increased 0.6% month-over-month and 0.2% year-over-year to just under $499,000 average.

– REMAX and TREB: Detached home sales were up in almost 88% of GTA markets in the first half of 2019. Year-to-date sales are almost 17% ahead of last year’s levels. 51% of neighbourhoods saw a rise in prices. Suggests the market sector has bounced back.

– Statistics Canada: 24,000 jobs lost in July, second consecutive decline on monthly basis. 0.13% decline, but number is still 1.89% higher than 2018. Rate of unemployment hit 5.7% in July, up from multi-decade low of 5.4% in May. Third consecutive monthly increase for the rate.

– National Bank monitor: It took 45.1% of an average household’s income to afford the mortgage on median-priced home in 11 major cities in July, down from 48.7% 3 months ago. In Toronto, that dropped to 58.1%, from 63.2%. Most improvement since financial crisis of 2008-2009.

– Bloomberg Nanos Canadian Confidence Index: Those who see local real estate prices rising in the next six months climbed to 43.2 per cent at the end of July, the highest month-end reading since December 2017, just before tighter mortgage qualification rules came into effect.

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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