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


October 25th, 2022 Mortgage Industry Update

The Bank of Canada announced on September 7th that its overnight lending rate will increase to 3.25% from 2.50%. The prime rate has increased to 5.45% from 4.70%. Inflation globally and in Canada continues to rise. Central banks around the world continue to tighten as well. The Bank of Canada suggests that they will more than likely continue to raise interest rates as necessary to tackle higher than anticipated inflation rates. 

Additionally this week:

– Statistics Canada: Investment in building construction nationwide saw a minimal 0.4% gain to reach $21.1 billion in August. Residential sector saw a 0.5% uptick to $15.7 billion. Multi-unit construction investment has also increased by 0.5% to $7.2 billion.

– CREA: Canadian home prices were down again in September, marking a seventh consecutive month of decline as they dropped nearly 9% below their March peak. The benchmark price of a home was $766,000, a fall of 1.4% from August. Home sales in September decreased by 3.9% monthly.

– Rentals.ca National Rent Report: Listing prices for rental housing saw an annual increase of 15.4% in September, hitting an average of $2,043. It’s the highest year-over-year increase in the average rent since April 2019. Also 4.3% higher than the previous month.

– In RE/MAX’s 2022 Canadian Condominium Report, it found the condo market is “losing inventory to an attractive rental market, as would-be sellers simply opt to lease their units long-term.”

– Royal LePage is lowering its expectations for home prices in Canada and now says prices in the fourth quarter are expected to be down compared with the same quarter last year, erasing the gains made at the start of 2022. Predicting the aggregate price will be down 0.5%.

– Statistics Canada: Employment grew in September for first time in 4 months, but gains remained moderate. Added 21,000 jobs last month, with both full-time and part-time work holding steady. In line with the median estimate of a 20,000 gain. The unemployment rate fell to 5.2%.

– TD Economics foresees average national home price growth dropping by 11.2% next year, but increasing by 6.1% in 2024. Annual average sales growth will fall 16% next year, but rebound with a 19.1% climb in 2024. Sales will bottom out at 20% below their pre-pandemic levels.

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