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 16th Mortgage Industry Update

March 16th, 2021 Mortgage Industry Update

The Bank of Canada announced on March 10th 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. Due to recent increased confidence in the markets, fixed rates have been slightly increasing. 

Additionally this week:

– Bank of Canada stands still on the overnight rate at 0.25%. Good news for variable rate mortgage holders as there is no expected change in prime rates!

– TransUnion: Canada’s total credit product balance grew by 3.7% annually in 2020 yielding an additional $68.9B in outstanding credit. However riskier borrowers (below-prime) fell by 10.6%, while the share of prime or better credit consumers went up by 4.9% during the same period.

– Equifax Canada: As of Q4 2020, average consumer debt, excluding mortgages, declined 0.8% quarterly and 3% yearly to $23,043. Primarily due to a gradual lowering of credit card balances since March 2020 as consumers spent less and paid down more of their balance every month.

– Zoocasa survey: 32% of home buyers during the pandemic purchased a home away from areas that they would have otherwise liked due to COVID-19. 53% of these buyers said that their purchased home was situated in a town/city with a smaller population than they would have considered.

– StatCan: Total value of building permits issued in Canada rose in January by 8.2% from December to $9.9B, surpassing previous record of $9.6B set in April 2019. Growth primarily driven by residential sector; saw value of permits issued increase by 10.6% to $7.1B in January.

– Statistics Canada: Economy shrank 5.4% last year, the sharpest annual decline in the post-World War II era and the third straight year in which it underperformed the US economy. However rose approximately 0.5% in January. By contrast, the economy expanded just 0.1% in December.

– TRREB: February home sales reached 10,970, 52.5% jump from the 7,193 homes sold in the same month last year. The average selling price for all home types was up 14.9% to $1,045,488, an increase from $910,142 in 2020. Average home price surpassed $1 million for the first time.

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

Leave a comment

Your email address will not be published. Required fields are marked *