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 11th Mortgage Industry Update

January 11th, 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:

– Equifax: In Q3 2021 Canadians in 35-44 age bracket accounted for 26% of mortgage borrowers, 30% of outstanding mortgage debt. 45-54 range represented 25% of mortgages, 26% of debt. 55-64 age represented 20% of mortgages, 17% of debt. 65+ accounted for 12% of mortgages, 8% of debt.

– Edge Realty Analytics: Typical Canada house price rose $160,000 yearly in 2021. Means that you’d have to make $270,000 of pre-tax income to “earn” as much as typical house did in past year. Homes sold over the past year surged to nearly $450B or the equivalent of 18% of GDP.

– According to Nanos, 19% of Canadians believe the economy will get stronger in the next six months, 45% think it will get weaker, and 28% say no change. 28% believing their finances will be better and 25% believe their finances will be worse by the end of 2022.

– Royal LePage Market Survey Forecast: In GTA, aggregate price of home in Q4 2022 forecast to increase 11% yearly to $1,256,500. Median price of single-family detached property expected to rise 10% to $1,564,200, while median price of condo is forecast to increase 12% to $763,800.

– Angus Reid: High housing prices have divided Canadians into three groups: the haves (40%), who want boom to continue lifting their assets, the have-nots (39%), who hope for market to tank so they can get in, and status quo (21%) who don’t mind prices staying right where they are.

– National Post: Housing costs in Canada have grown by a staggering 375% nationwide in just the last two decades. In Toronto the growth is an unbelievable 490% during that same period. TRREB’s historical statistics reveal an average selling price of around $251K twenty years ago.

 
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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