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 27th, 2023 Mortgage Industry Update

The Bank of Canada announced on June 7th that its overnight lending rate will increase to 4.75%. Inflation in Canada increased surprisingly last month along with strong job and GDP numbers. The latest data remains in line with the expectation that inflation will come down to around 3% shortly. The prime rate increases to 6.95%.

Additionally this week:

– Statistics Canada: Real estate secured debt went up by 0.2% ($4.5B) to reach $2.289.9T in April. Total household credit liability ticked up by 0.2% to reach $2.853.0T. Household mortgage debt went up by 0.2% on a monthly basis and by 2.6% on annualized basis to $2.120.7T in April.

– Teranet Composite House Price Index: Home prices rose between April and May across Canada’s big cities; 1.6% price increase. First time in 11 months that Index saw an uptick in home prices after adjusting for seasonal effects – going up 0.6% after 10 consecutive monthly declines.

– Statistics Canada: Mortgage interest costs have risen by 70% as of Q1 on an annual basis. Also have risen 12.6% over last quarter. Share of mortgages with an amortization period of longer than 25 years has risen sharply to 48.2%. Up from 46% a year ago and 37% in Q1 2021.

– Canada’s population has surpassed 40 million people, according to Statistics Canada. The population growth rate currently stands at 2.7 per cent. That’s the highest annual growth rate since 1957.

– Statistics Canada: Mortgage borrowing has reached its lowest level since 2003, primarily due to the impact of higher interest rates. During the first quarter of this year, households added a net of $11.2 billion in mortgage debt, marking the smallest increase in two decades.

– CREA: May home sales jumped by 5.1% over the previous month. Up 1.4% annually. But new listings remain mired at historical lows despite increasing by 6.8% over April. This news means home sales have now risen in four consecutive months.

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