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


January 24th, 2023 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:

– Rentals.ca: Average listed rent across Canada grew by 12.2% annually to reach $2,005 in December. Marked second consecutive month of average Canadian rent rates exceeding $2,000. Toronto rent rates now at $2,457 for one-bedroom (up 21.3%) and $3,215 for two-bedroom (up 18.1%).

– CREA expects home sales to edge down less than 1% annually (to 495,858) and prices to fall almost 6% (to $662,103) from 2022 this year. For 2024 expects home sales to rise by 10.2% and national average home price to gain 3.5% from 2023 to around $685,056.

– Statistics Canada: Inflation rose 6.3% annually in December. Slower than the 6.4% gain expected in a Bloomberg survey of economists and down from 6.8% in November. Index fell 0.6% monthly, the biggest monthly drop since April 2020, exceeding forecasts for a 0.5% drop.

– CREA: December national home sales increased by 1.3% monthly. Homebuying activity was down 39% yearly. MLS Home Price Index fell by 1.6% on a monthly basis. National average sale price plummeted by 12% from December 2021. Number of newly listed properties down by 6.4% monthly.

– Canada saw at least 431,000 new permanent residents last year, significantly exceeding the 2022 immigration target of 401,000. This also represented the country’s largest ever annual increase since 1913, according to Immigration, Refugees and Citizenship Canada.

– Royal LePage: Canadian home prices fell in the fourth quarter but they are still well above pre-pandemic levels. The national aggregate home price dropped 2.8% on a yearly basis to $757,100. This marked the first year-over-year decline since the end of the 2008 financial crisis.

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