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


May 24th, 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: The economy added 15,300 jobs in April, fewer than half the 40,000 anticipated by economists. The increase ended a surge that saw Canada create about 410,000 jobs over the previous two months. Unemployment rate fell to 5.2% – lowest in data going back to 1976.

– TRREB: The average price for detached homes in Brampton peaked in January at $1,652,088 and has fallen each month since to an average of $1,474,967 in April (a decline of $177,121 or 10.7% in just 3 months). Semi-detached homes are down 11% from $1,262,256 to $1,122,428.

– Statistics Canada: Residential building construction costs saw greatest increase since Q2 2021 with significant 5.6% upswing during Q1 2022. Major reason for increase was steady rise in labour costs. Saw greatest increases in Calgary (up 6.9%), Edmonton and Toronto (both up 6.8%).

– Ipsos poll: One in three (32%) Canadians say that they’d look for another job if their employer forced them to work exclusively at an office, a sentiment more widely shared among those aged 18 to 34 (42%) than those aged 35 to 54 (29%) and 55 and over (22%).

– TRREB: 8,008 properties sold in April, far below the 13,613 in 2021; down 41.2% annually and 27% monthly. New listings down 11.7% annually. All property types experienced double-digit sales declines ranging from 32% to 47%. 3.5% monthly decline in avg selling price to $1,254,436.

– More than 15,000 construction workers are now on strike in Ontario. Union says strike could delay residential building projects in GTA. Includes high-rise forming workers, self-levelling flooring workers, house framers and tile, railing, carpet and hardwood installers.

– Statistics Canada: Canada’s economy extended its streak of monthly gains, with preliminary data showing the expansion shot past expectations for Q1. GDP for a 10th straight time in March, increasing 0.5%. Data suggests Q1 growth of about 5.6% annually.

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