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


September 7th Mortgage Industry Update

September 7th, 2021 Mortgage Industry Update

The Bank of Canada announced on July 14th 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:

– Equifax Canada: Canadians drove new mortgage volumes up to a quarterly high, soaring 60.2% to more than 410,000 in Q2 annually. Size of average new mortgage loan also jumped by 22.2% to more than $355,000. Overall consumer debt now $2.15 trillion, up 3% quarterly, 7.5% annually.

– Equifax Canada: Latest consumer credit trends and insights report found the number of new Home Equity Lines of Credit jumped 56.7 per cent in the second quarter compared to a year earlier.

– Value of GTA commercial real estate transactions hit a record $13.2 B in the first half of 2021, an increase of 68% annually. 1,417 transactions during period, including 13 valued at more than $100 M. $31 B in sales through first six months, compared to $40 B for all of 2020.

– TransUnion Report: Consumer demand for credit is gradually returning to pre-pandemic levels, with credit applications increasing by 5% year over year in June. A substantial increase in home sales volume and average sale prices pushed mortgage originations up by 37.5% annually.

– CREA: Canada’s housing market continues to slow in 2021, sales dipped 3% in July. Prices are still up on last year but have dipped since their last high in March 2021, with the average house price falling to $662,000. Number of homes sold has now fallen for four months in a row.

– Zoocasa survey: 80.5% of respondents believe low interest rates are driving home prices up, compared to 32.8% of people who felt this way in February. Additionally, 47% of respondents believe low mortgage rates are improving affordability for homebuyers, a decrease of 3.8%.

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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