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 31st, 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:

– TRREB: 1,285 active listings in Brampton (up 127% from Feb) and 1,101 in Mississauga (up 113%) in April. Average price for all home types in Brampton falls 9.8% from $1,346,275 in Feb to $1,241,658. Mississauga dropped from record high of $1,225,339 to $1,170,211 – down 4.5%.

– Statistics Canada: Investment in building construction increased by 1.8% to $20.3 billion in March, with upward momentum registered in both residential (1.7%) and non-residential (2%) sectors. Residential segment saw 6th straight month of gains, reaching $15.1 billion in March.

– Statistics Canada: The inflation rate in Canada hit its highest level for 31 years in April, with the Consumer Price Index rising by 6.8% compared with the same time last year. It also inched upwards from 6.7% in March.

– CMHC says annual pace of new home construction in April rose 8% compared with March. Seasonally adjusted annual rate of housing starts in April was 267,330 units, up from 248,389 in March. Increase came as the annual rate of urban starts rose 10% to 245,324 units in April.

– CREA: Home resales were down 12.6% across Canada from March to April and 25.7% annually. National average home price was around $746,000, figure has now declined for two months in a row after peaking at over $816,000 in February. Still, prices remain around 7% higher than 2021.

– Rentals.ca report: Toronto expected to see largest jump in rent prices out of any Canadian market with an 11% annual rise projected by the end of 2022, bringing average rent price up to $2,495. Mississauga follows behind at 7%, Vancouver at 6%, Montreal at 5%, Calgary at 4%.

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