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


April 27th Mortgage Industry Update

April 27th, 2021 Mortgage Industry Update

The Bank of Canada announced on April 21st 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 the later half of 2022 now, as they observe the country’s faster than expected recovery from COVID-19. 

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!

– Statistics Canada: Households added $5.3B in mortgage debt in February, which was down from $6.0B in January and continued a decline since last October when monthly mortgage borrowing hit $13.3B. Also down from 2020 when households added $6.3B in mortgage debt.

– CREA: More than 70,000 homes were sold last month, beating the previous record for the month by 22,000, up 76% annually and 5.2% monthly. Average selling price was $716,828. Up 31.6% in a year, and the biggest annual pace of gain on record.

– Bank of Canada report: Survey respondents anticipated spending more than one-third of extra savings from the pandemic over the next two years, and one-tenth to pay down debt. Consumers expect their spending patterns to return to normal in about one year.

– BMO survey: Hints that Canadians are well on the way to recovering from the unanticipated impact of COVID-19. 39% say they are feeling more secure today compared to a year ago, 76% are feeling optimistic about their financial future for the next year.

– RBC poll: 36% non-homeowners under age of 40 have given up on ever buying a home. 62% say they expect the majority of people will be priced out of the market over the next decade. 30% say they’re still considering buying in the next two years, up 8% from 2020 spring housing poll.

– CBRE reported that a growing number of emptied-out office buildings in Toronto, Vancouver, and Montreal drove the national vacancy rate for the asset class to 14.3%, significantly higher than the 9.3% level during the first quarter of 2020. Toronto’s vacancy at 9.1% (up from 2%).

– Scotiabank Housing Poll across sample of just over 3,000 Canadians: 57% of respondents agreed that the low-interest rate environment makes for a good homebuying opportunity. That’s nearly 20% more compared to a similar survey conducted in August last year.

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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