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 12th, 2022 Mortgage Industry Update

The Bank of Canada announced on March 2nd that its overnight lending rate will increase to 0.50% from 0.25%. The prime rate has increased to 2.70% from 2.45%. Economies are emerging from the impact of the Omicron variant of COVID-19 more quickly than expected. Overall economic growth is strong across the nation. The Bank of Canada suggests that they will more than likely continue to raise interest rates over this year to tackle higher than anticipated inflation rates. 

Additionally this week:

– BMO study: 62% of gen Z (18-25) and 54% of millennials (26-41) review their goals at least quarterly, while 41% of gen Z and 29% of millennials do so monthly. In comparison, only 36% of boomers (58-67) review their plans at least once a quarter and hardly 15% do so every month.

– New federal budget announces new tax-free first home savings account, extension on FTHBI to March 31 2025, ending blind bidding, flipping tax if property sold in less than 12 months, and prohibit foreign buyers from purchasing non-recreational residential property for 2 years.

– The national office-vacancy rate rose to a record 16.3% in the first quarter, according to a report by commercial real estate brokerage CBRE. The trend was reflected in Toronto, Canada’s largest city and financial capital, where vacancies ticked up to 14.8%.

– TRREB: There were 10,955 home sales in March; 17% monthly increase, but 30% annual decrease. New listings dropped 11.9% yearly. Average selling price of a property clocks in at $1,299,894; down only modestly from the record set in February, and 18.5% rise from March last year.

– Nearly half (43%) of those polled in a recent Scotiabank survey said they are putting their home purchase plans on hold, an increase from 22% in 2021 and 20% in 2020. Half of those aged 18 to 34 said rising interest rates are causing them to reevaluate their purchase plans.

– Royal LePage predicts single-family home prices in Cottage Country will increase by 13% in 2022, with demand outpacing supply. Price hike wouldn’t be as steep as in 2021 (Increased in value 26.6% compared to 2020) — but clearly people are still hungry for recreation real estate.

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