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.

Contact

(416) 795-1919

Search Mortgage Corp. 100-50 Village Centre Place Mississauga, Ontario, L4Z 1V9 License #: 12652

harpreet@searchmortgage.ca

January 4th Mortgage Industry Update

January 4th, 2022 Mortgage Industry Update

The Bank of Canada announced on December 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 mid 2022 now, as compared to initially saying late 2022. 

Additionally this week:

– Statistics Canada: Q2 2021, 123,482 people moved to another province or territory, which is highest for a Q2 since 1972, and highest of any quarter since 1991. Ontario saw the highest net losses to interprovincial migration for a second-quarter since at least 1972, losing 11,857.

– The Canadian Real Estate Association expects the average price of a home to post an annual increase of 7.6 percent in 2022. However, this could be a “somewhat conservative forecast given what the handoff from 2021 to 2022 is looking like”.

– Statistics Canada: Economy expanded for a sixth straight month in November. Gross domestic product rose by 0.3%. That’s after an even stronger 0.8% gain in October.

– CREA projects a 12.1% decline in sales next year, which is right in line with the 10-15% BMO is expecting. Keep in mind, though, that 2021 was a record-shredding year for Canadian real estate. CREA says 2022 could still be the second-best year on record for home sales.

– As part of its annual review of the stress test for uninsured mortgages, the Office of the Superintendent of Financial Institutions confirmed the minimum qualifying rate will remain at 5.25% or contract rate + 2%; whichever is higher.

– Engel & Volkers: 80% of richest millennials (household income of more than $250k) believe their parents will move in with them in future. About a third say they are already responsible for caring for one of their parents, and 16% said their parents are currently living with them.

 
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.

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Harpreet Singh

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