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 28th Mortgage Industry Update

September 28th, 2021 Mortgage Industry Update

The Bank of Canada announced on September 8th 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 recovery from COVID-19. 

Additionally this week:

– Statistics Canada: Inflation rose to 4.1% in August from a year earlier. Marks the fifth consecutive month of inflation readings above the Bank of Canada’s 3% cap. That’s the highest since March 2003, when it touched 4.2%. Economists were predicting a yearly gain of 3.9%.

– CREA now expects 656,300 sales in 2021, jump of 19% annually, but down from previous forecast of 682,900. 577,000 sales expected in 2022 (down 12.1%). Price forecast for 2021 now $680k (was previously $678k), up 20% annually. Prices expected to rise in 2022 to $718,000; up 5.6%.

– CREA: Average selling price in August was $663,500, up 13.3% annually and 0.5% monthly. Ends four month streak of monthly price declines. Since March peak, average prices have fallen 7.4%. 50,876 home sales, down 14% annually, but still second best August result in history.

– Statistics Canada: Mortgage debt associated with private lenders grew by 0.9% annually in June to $346.6 billion, while non-mortgage loan liabilities expanded by 1.2% during same time, amounting to an increase of $8.5 billion and representing the second consecutive month of gains.

– Statistics Canada: The estimated aggregate value of Canadian households increased by $513.4 billion during Q2 of this year. This pushed the housing sector’s net worth to $14.23 trillion. Since Q1 2020, households have added almost $3 trillion to their net worth.

– CBRE Group Inc: $14 billion worth of commercial real estate changed hands in Q2; a 29% quarterly increase. Investors targeted apartment buildings, warehouses, driving surge of deals that has Canada on pace to post nearly $50 billion in commercial real estate investment this 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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