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


January 28th Mortgage Industry Update

January 28th, 2020 Mortgage Industry Update

The Bank of Canada announced on January 22nd 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 early 2020, with the next major move likely being a rate decrease.

Additionally this week:
– Bank of Canada stands still on the overnight rate at 1.75%. Good news for variable rate mortgage holders as there is no expected change in prime rates!

– Statistics Canada 2018 Canadian Housing Survey: Over 1.3 million (9%) of Canadian households bought their first home within last 5 years. 53% of homebuyers bought a single-detached home within previous 5 years. Half of first-time homebuyers nationally were under the age of 35.

– The latest Rentals.ca rental report states that the average Canadian rent is expected to increase by 3% year-over-year on a national basis in 2020. A 7% increase is expected in Toronto, 5% in Montreal, 4% in Ottawa, and 3% in Vancouver, according to the rent report.

– Canada has never built more housing at the same time. There were 274,829 units under construction in Q4 2019, up 2.82% from Q3. This represents an increase of 7.40% from the same quarter a year before. The current peak is a little over 30% higher than any other previous peak.

– The average Canadian home price in the 1960s was $136,000 in today’s dollar compared to $308,000 in the 2000s and $428,000 in the 2010s. In the 1960s, the annual mortgage payment was 16% of the average family income, compared to 20% in the 2000s and 23% in the 2010s.

– Data from Council on Tall Buildings and Urban Habitat showed that Toronto currently has 67 high-rises at least 150 metres tall. Another 31 skyscrapers are under construction, as well as 59 are proposed. Considerably outstrips second-placer Chicago, which has 126 skyscrapers + 19.

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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