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


November 8th, 2022 Mortgage Industry Update

The Bank of Canada announced on October 26th that its overnight lending rate will increase to 3.75% from 3.25%. Inflation globally and in Canada continues to rise. Central banks around the world continue to tighten as well. The prime rate has increased to 5.95% from 5.45%. 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:

– Equifax Canada’s consumer survey: Average credit card balance held by Canadians was at a record high of $2,121 by the end of September. Equifax says average non-mortgage debt was $21,188, returning to levels not seen since the first quarter of 2020.

– Statistics Canada: Economy grew by 0.1% in August. An initial estimate for third-quarter GDP also indicates an annualized growth rate of 1.6% for the July-to-September period, down from an annual pace of 3.3% in the second quarter.

– TRREB: Average rent for one-bed condo up by 20% annually to $2,481 in Q3. Average rent for a two-bed hit $3,184, a 14.5% jump. Three-bedroom units increased almost 11% to $4,139 and bachelors raised 21% to $2,057. There were 13,366 total condo rental transactions, down 17.3%.

– RBC: Canadians’ net wealth is about to fall at its fastest pace in decades. Canadians gained a total of $3.9 trillion in net wealth over the pandemic amid higher home values. Since then, about $900 billion has been lost as a result of higher rates, and a decline in housing.

– The Ontario government has raised the non-resident speculation tax on homes purchased by foreign nationals from 20% to 25%, making it the highest in Canada. The government increased the non-resident speculation tax from 15% to 20% last March.

– Dye & Durham Ltd survey: 30% of respondents believe Canada is already in a recession. 53% of people believe Canada is imminently entering a recession. 48% said they do not believe the Bank of Canada’s interest rate hikes are having a cooling effect on inflation.

– BILD: GTA new home market saw a substantial annual deceleration of 89% in September, with overall sales veering significantly below (84%) the 10-year average. Slowed demand especially apparent in single-family home segment, with sales plummeting by 96% on a year over year basis.

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