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


June 6th, 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:

– The national economy saw an annualized growth rate of 3.1% in 2023’s first quarter, Statistics Canada has revealed, topping the federal agency’s own expectations for Q1. StatCan had expected economic growth to hit a clip of 2.5% in the first three months of the year.

– Urbanation: 48% of leveraged condo investors who bought pre-construction units to rent out were cash flow positive in 2022 compared with 56% in 2021 and 60% in 2020. Rent generated by newly-completed units was lower than mortgage costs, condo fees and property taxes.

– CMHC: Variable rate mortgages slipped to less than 20% of new mortgages and fixed-rate 5-year loans were down to 15% of new mortgages as more consumers chose fixed rates for 2-3 years. Also fewer mortgage borrowers are applying for refinancing – a 32% drop in refinances in 2022.

– Zoocasa: Condo prices in Peel Region dropped by 1.89% to $606,159 in March compared to $617,867 in January. Only 129 condos sold in Peel Region in January of 2023 but that number jumped to 256 in March. This marks a 98.45% increase in sales.

– Royal LePage survey: 26% of respondents said they are likely to buy an investment property within five years. 11% of Canadians currently own an investment property, and just over half of those investors said they planned to buy another within five years.

– CIBC study: In 2021 30% of first-time buyers benefited from financial assistance provided by family members. 9% move-up buyers also received help. Totalled more than $10B, representing 10% of total down payments during that period. On average, first-time buyers received $82,000.

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