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


July 18th, 2023 Mortgage Industry Update

The Bank of Canada announced on July 12th that its overnight lending rate will increase to 5.00%. The Canadian economy has been stronger than originally expected, with more momentum in demand. CPI inflation is forecast to hover around 3% for the next year before gradually declining to 2% in the middle of 2025. The prime rate increases to 7.20%.

Additionally this week:

– TransUnion: Over a third of Canadians are preparing for a possible recession by bulking up their savings. Those in the younger cohorts—Gen Z and Millennials—are even more likely to be bracing for recession, at 50% and 39%, respectively. 36% believe we are currently in a recession.

– Urbanation: Average asking rents in Canada reached a record high of $2,042 in June, surpassing the previous peak of $2,024 seen in November 2022 by 0.9%. In the past two years alone, average asking rents nationwide saw a 20% gain (up by $341).

– Statistics Canada: The total value of building permits issued in May jumped 10.5% monthly to $10.5B. The increase was driven by mainly the non-residential sector, which saw total monthly value of permits rise 14.2% to $3.7B. Residential permits alone rose 8.5% to $6.8B.

– TransUnion: Sustained pressures from recent inflation levels and rising interest rates have forced most Canadians to cut their miscellaneous spending. Most notable cutbacks were on discretionary spending (54%), digital services (21%), and subscriptions or memberships (26%).

– Statistics Canada: National unemployment rate rose to 5.4% in June, increasing for 2nd consecutive month and hitting highest level for over a year. While economy added 60,000 jobs, population growth and higher number of people searching for work had seen jobless rate tick upwards.

– The Financial Consumer Agency of Canada’s new guidelines indicate that lenders should support consumers whose mortgage payments are rising and act in accordance with the principles of fairness, appropriateness and accessibility.

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