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


September 5th, 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:

– TD Economics: Latest spending data on debit card and credit cards suggest that Canadians are reducing their expenses. While seasonally adjusted card spending went up by 8.2% monthly in July, it came immediately after steep 7.3% drop in June and “near-zero” pace over spring months.

– TransUnion: Canadian household debt continues to hover at record high of $2.34 trillion in Q2 2023, including $1.73 trillion in mortgage debt and $604 billion in non-mortgage debt. On quarterly basis, number of Canadian consumers holding an outstanding credit balance grew by 3.3%.

– Royal Bank of Canada, the country’s largest lender, disclosed that 43% of its Canadian residential mortgages had an amortization period of longer than 25 years, as of July. That’s up from 40% a year earlier, and just 26% in January 2022.

– Royal LePage new market trend report: Edmonton and Calgary have been the top-searched Canadian cities on their company website for the past two years. Edmonton was the top-searched city in the first six months of 2023, with Calgary trailing closely behind.

– In its Hot Pocket Communities Report, RE/MAX found that detached homes in nearly 93% of the 82 districts it analyzed in Vancouver and Toronto —which included downtown neighbourhoods and exurbs—were cheaper in the first half of 2023 compared to the previous year.

– Leger new poll: When respondents were asked which level of government deserves the most blame for Canada’s current housing crisis, 40 per cent of respondents pointed the finger at the federal government and 32 per cent at their provincial government.

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