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


December 27th, 2022 Mortgage Industry Update

The Bank of Canada announced on December 7th that its overnight lending rate will increase to 4.25% from 3.75%. Inflation globally and in Canada continues to rise. Central banks around the world continue to tighten as well. The prime rate has increased to 6.45% from 5.95%. The Bank of Canada suggests that they are now considering whether or not more increases are needed. 

Additionally this week:

– RBC: Those purchasing real estate in Ontario and B.C. in 2023 will hold a stronger hand as conditions in these provinces continue to favour buyers as opposed to sellers. Nationwide real estate conditions look reasonably stable with sales-to-new listings in “balanced territory.”

– TRREB: Average price for detached homes in Mississauga rose by 2.6% from $1,389,165 in October to $1,427,501 in November. In Brampton, the average detached home price rose 2.8% from $1,163,975 to $1,197,119 monthly. First increases in several months.

– Statistics Canada: Investment in building construction across Canada held largely steady in October, with a slight 0.2% monthly uptick to $20.9 billion. Ontario accounted for nearly all of the gain. However, the residential sector saw a 0.1% downturn to $15.4 billion.

– CREA: Home sales fell 3.3% monthly in November; are now down 38.9% yearly. Home prices down another 1.4% from October, and 4.4% lower yearly. New listings were down 1.3% monthly. MLS Home Price Index is down 11.5% from February’s peak and remains 35% above pre-pandemic levels.

– Urbanation: The average monthly cost of renting a home in Canada surpassed $2,000 for the first time ever in November. Average across all housing types now sits at $2,024. That’s up 12.4 per cent over last November, far outpacing Canada’s inflation rate of 6.9 per cent.

– The Office of the Superintendent of Financial Institutions announced that it will maintain the current “mortgage stress test”, which requires borrowers to show that they can afford a rate of either 5.25% or 2% above their agreed contract rate – whichever is higher.

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