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


November 19th Mortgage Industry Update

November 19th, 2019 Mortgage Industry Update

The Bank of Canada announced on October 30th 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 and into early 2020, with the next major move likely being a rate decrease.

Additionally this week:
– Statistics Canada’s new Residential Property Price Index: House prices increased 0.20% in Q3 2019, down 0.59% from 2018. From Q1 2017,up 5.84%. Condo prices fell 0.18% in Q3 2019, up 2.11% from 2018. From Q1 2017, up 18.89%. Increase for condo prices is over 3x the size of houses.

– New analysis by Zoocasa found that a condo in the City of Toronto valued at an average of $628,074 (as of Q3 2019) requires down payment equal to 14.7 months of the market’s average rent rate – a daunting prospect for any first-time buyer or hopeful home owner on a severe budget.

– Statistics Canada: October national labour market shrunk by 1,800 jobs after two straight months of strength; significantly deviated from expert predictions of 15,000 new employees. Unemployment rate remained constant at roughly 5.5%. Workforce decline was also first since July.

– RBC Survey: Nationally, more than half of would-be first-time homebuyers are hesitant to pull the trigger on their dreams of homeownership. In Ontario 61% of potential buyers would prefer to wait. 58% of Ontarians believe prices could drop in the next 12 months.

– Statistics Canada: Residential building permits issued by Canadian municipalities totaled $5.1 billion in September, down 10.7% from the previous month with multifamily permits down 12.1% to $2.9 billion and single-family permits down 8.7% to $2.2 billion.

– CMHC says the residential market showed a moderate degree of vulnerability in its latest quarterly report but that imbalances continue to narrow. The moderate risk rating is the third in a row after it flagged the market as high risk for two and a half years.

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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