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


March 9th Mortgage Industry Update

March 9th, 2021 Mortgage Industry Update

The Bank of Canada announced on January 20th that its overnight lending rate will remain at 0.25%. The prime rate remains 2.45%. The Bank of Canada suggests that they will more than likely keep rates at this “effective lower bound” until 2023, as they observe the full effects of the pandemic. 

Additionally this week:

– Altus Group: GTA market saw 1,506 new single-family homes sold in January, marking the largest number of January transactions involving this asset class since 2006. New condo apartments had fewer openings, with only 665 sales during the month (down 39% year over year).

– The Urban Reform Institute recently released its 2021 report on international housing affordability, in which Toronto ranked fifth on the list of the top “severely unaffordable” cities around the world — this is up one spot from last year’s ranking.

– Royal LePage survey: Nearly 48 per cent of Canadians aged 25 to 35 currently own their home, and a quarter of these homeowners purchased a property during the coronavirus pandemic Even among non-homeowners, 84 per cent strongly intend to invest in a home in the future.

– Rentals.ca: Asking rents in Toronto expected to rebound 4% by the end of the year. Toronto already experienced significant declines in avg rents amid pandemic, with one-bedroom rents falling nearly 22% annually to $1,811 in January, while 2-bedroom rents down 18% to $2,403.

– Debt associated with Canadian home equity lines of credit fell to $259.73B in December, posting its largest drop for the month in several years. Data from Bank of Canada indicated that the national outstanding balance for this loan type fell by $369M (0.14%) versus November.

– CMHC: More than 250,000 homeowners with mortgages insured sought payment deferrals between last March and September, but by the end of that period almost 65% of the deferrals had ended. Slightly more than 67% of the deferrals ended on time, while almost 33% finished early.

– Despite early signs of overheating in Canada’s housing market, Bank of Canada Governor Tiff Macklem so far has no plans to raise interest rates until the economy and employment are back on track following the slump caused by COVID-19. Likely to remain into 2023.

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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