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


February 28th, 2023 Mortgage Industry Update

The Bank of Canada announced on January 25th that its overnight lending rate will increase to 4.50% from 4.25%. Inflation globally and in Canada continues to remain high. Central banks around the world continue to tighten as well. Our economy remains in excess demand, however there is indication we are nearing the end. The prime rate has increased to 6.70%.

Additionally this week:

– BILD: Only 567 new homes were sold across the GTA in January; lowest level for the month since tracking began in 2000. Annual decline of 81% and is 70% below 10-year average. Single-family home sales were only 186 units, benchmark price dropped to $1,730,359 (2.3% annual decline).

– Royal LePage: As of the end of 2022, average Canadian home valued between $950,000 – $1,050,000 comes with 3.2 bedrooms, 2.6 baths, and 1,763 sq ft of living space, across all residential property types. In GTA comes with 3 bedrooms, 2.2 baths, and 1,461 sq. ft. of living space.

– Statistics Canada’s New Housing Price Index for January 2023: New home prices declined by just 0.2% from December. Of the 27 census metropolitan areas included in StatCan’s report, 10 saw decreases in new home prices, the most since September 2018. However changes were minimal.

– RE/MAX survey: 59% of respondents indicated that they have at least one concern related to buying or selling their home in 2023. The greatest sources of stress were deemed to be the rising cost of living and inflation (34%) and a lack of affordable housing (25%).

– Statistics Canada: Inflation rate slowed to 5.9 per cent in January. That number was lower than the 6.2 per cent that economists were expecting. However prices were up by 4.9% without taking into account increases in the cost of food and gasoline.

– Rentals.ca report: Average rent for all property types in Canada was $1,996 in January. Although figure has dipped nominally since December, it was 9.5% above pre-pandemic level and 10.7% over year prior. January was 9th straight month in which annual rent growth exceeded 10%.

– CREA: National home sales in January (20,931) hit a 14-year low for the month. Tumbled by 37.1% annually and 3% since December. MLS Home Price Index was also down 1.9% monthly; was a slight one compared with the 12.6% yearly decline. New listings were up 3.3% on a monthly 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