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


August 29th, 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:

– Nanos Research: Growing number of Canadians believe that the federal Liberal administration is to blame for inflation, with 30% of would-be voters now saying that government spending is the main factor impelling price gains. Was higher share compared to the 26% seen in July 2022.

– A massive increase in international students coming to Canada in recent years is putting pressure on the property market and a cap on visas may be needed. Housing Minister Sean Fraser: “I think that’s one of the options that we ought to consider”.

– Statistics Canada: Investment in residential construction declined in June, with a 4.5% monthly drop to end up at $12.1 billion. Marked fourth consecutive month of declines. Overall investment in building construction fell by 3.1% to $18 billion in June.

– Teranet-National Bank composite index: In July, Canadian home prices saw their second strongest monthly increase ever after the one registered 17 years ago. The index grew by 1.8% from June to July excluding adjustments. This also represented the fifth straight monthly increase.

– Canadian Bankers Association: National mortgage arrears rate remained unchanged for the fifth consecutive month. Held firm at 0.15%, where it’s been since February. That works out to just over 7,600 mortgages in arrears out of a total of nearly 5.1 million.

– Results of a survey by The Real Estate and Mortgage Institute of Canada (REMIC) reveals that 30% of respondents regret the mortgage they are currently in, 22% say it’s unaffordable due to rate hikes, and 12% say they are locked in at a bad rate.

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