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


August 9th, 2022 Mortgage Industry Update

The Bank of Canada announced on July 13th that its overnight lending rate will increase to 2.50% from 1.50%. The prime rate has increased to 4.70% from 3.70%. Inflation in Canada is higher and more persistent than the Bank originally expected and will likely remain around 8% in the next few months. 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: Benchmark home prices fell for fourth straight month in July. Declined 3.9% monthly, bringing total drop since April to 13.3%. Worst four-month performance since the measure started being tracked in 2005. Still home-price index is up almost 13% from the same time last year.

– TRREB: Q2 average rent for one-bed unit in Mississauga climbed to $2,284 per month and $2,097 in Brampton. Represented a $402 (21.4%) yearly increase in Mississauga and $263 (14.3%) increase in Brampton.

– Canadian Housing Statistics Program: 10.2% of non-resident property owners in Canada hold multiple properties within same region. With 3.5% of owners in Canada being non-residents, the numbers suggest that this demographic has a considerable effect on housing supply and prices.

– TRREB: Rents now fully recovering pandemic losses and reaching record levels. Average monthly rents on newly leased one bedroom apartments rose to $2,269 in Q2, up 20% annually. Rents on two bedroom homes, at $2,979, were up 15%. The cost of three bedroom apartments rose 13%.

– The residential building construction price index went up by 5.3% on a quarterly basis in Q2, according to Statistics Canada.

– BILD: June new home sales fell 56% annually. New condo sales down 44%. Single family home sales down 85% annually and below 10 year average. Meantime, new condo prices rose 12.4% and single family home prices were up 31.2%.

– RBC: Benchmark home prices could fall more than 12% through early next year from the market’s peak, a bigger decline than any of the four national downturns of the past 40 years. Sales are also expected to slump 23% this year and 15% next. Total decline of 42% since early 2021.

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