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 26th, 2022 Mortgage Industry Update

The Bank of Canada announced on April 13th that its overnight lending rate will increase to 1.00% from 0.50%. The prime rate has increased to 3.20% from 2.70%. Canadian growth is strong and the economy is moving into excess demand. Labour markets are tight, and wage growth is back to its pre-pandemic pace. 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:

– Statistics Canada: Annual rate of inflation hit 6.7% in March, the fastest year-over-year increase in the consumer price index in over 31 years. The increase compared with a gain of 5.7% in February, and was the highest reading since inflation hit 6.9% in January 1991.

– Demographia International Housing study: Pittsburgh named most affordable city for housing in the world. Hong Kong, long the world’s most expensive city for housing, ranked bottom of 92 housing markets. U.S. was most affordable country. Vancouver ranked 3rd most expensive.

– Royal LePage raising forecast for home prices this year despite signs of slowdown in some major housing markets. Expects aggregate price of a home in Canada to rise 15% yearly in 2022 to $895,900, led by the country’s two hottest markets. In December forecast was a gain of 10.5%.

– National Association of Realtors (USA): In 2021, Canadians purchased over $5B (8,800 sales) worth of real estate in USA, making Canada the largest country of origin for foreign buyers. However this has been on the decline; in 2012 Canadians bought around 50k homes and 20k in 2019.

– Vacant home tax similar to one already in effect in Toronto could soon be introduced in Region of Peel. Has launched an online survey to solicit public input on the design of the new tax. Survey will be available until May 16. Will also be holding a pair of public consultations.

– Sotheby’s: During the spring market, the $1M+ luxury condo segment saw sales increase by 120% and 72% in the GTA and City of Toronto. $4M+ residential real estate segment saw a 30% annual increase in activity during Q1 2022.

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