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


May 23rd, 2023 Mortgage Industry Update

The Bank of Canada announced on April 12th that its overnight lending rate will remain at 4.50%. This was the second hold-still since they started increasing rates a year ago. Inflation has started to lower. Latest data remains in line with the expectation that inflation will come down to around 3% in the middle of this year. Prime remains at 6.70%.

Additionally this week:

– Bank of Canada: The share of new mortgages with an amortization period longer than 25 years rose to 46% from 41% over the last year. The share of new mortgages with a debt service ratio of more than 25% more than doubled during 2022, to 29%.

– New figures released by Statistics Canada showed that mortgage interest costs ballooned by a huge 28.5% last month from the same time last year, with year-over-year rental costs spiking by 6.1% and accelerating over the previous month.

– Urbanation: April average asking rents in Canada for all asset classes went up by 20% to reach a monthly rate of $2,002. This was essentially unchanged from the level seen in March ($2,004), and represented a 9.6% annual increase ($1,827 in April 2022).

– Statistics Canada: Inflation unexpectedly reaccelerated last month to 4.4%. First increase since June 2022. That’s faster than the 4.1% gain expected by economists. Up from 4.3% in March. On a monthly basis, the index rose 0.7% in April, versus expectations of a 0.4% gain.

– CREA: National home sales spiked by 11.3% monthly in April; 38,164 units. New listings inched up by 1.6% to 54,355. Average home price up to $716,000 – up $103,500 since the beginning of the year, although still 3.9% below its level at the same time last year.

– Over the last ten years real GDP per capita in Canada grew just 0.8% a year on average, the lowest rate of growth since the 1930s. From Q4 2016 to end of 2022 it rose only 2.8%. During the worst of the pandemic, per capita real GDP fell 13.2%.

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