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


December 19th, 2023 Mortgage Industry Update

The Bank of Canada announced on December 6th that its overnight lending rate will remain at 5.00%. The Canadian economy has now entered a period of weaker growth and is continuing to slow. Recent data suggesting economy is no longer in excess demand. The prime rate remains at 7.20%.

Additionally this week:

– Royal LePage predicts that the aggregate price of a home in Canada will rise 5.5% yearly by the end of 2024 to $843,684. “Based on this forecast, by the end of next year, home prices will have essentially climbed back to their pandemic peak, reached in the first quarter of 2022”.

– OSFI has decided to maintain the qualifying test imposed on mortgage borrowers. Stress test that determines if borrowers applying for mortgages will be able to handle possible rate increases in the future will continue to be greater of 5.25%, or bank’s contract rate plus 2%.

– Urbanation: Annual asking rent for all residential property types in Canada saw 8.4% yearly increase in November. Average rent now $2,174 – only 0.2% monthly decrease from rents seen in October (averaged $2,178). Moderating annual rate of rent growth for third consecutive month.

– Equifax Canada: Mortgage debt rose by 1.7% on a quarterly basis during Q3, while non-mortgage debt growth was slightly lower at 1.2%. Total consumer debt in Canada grew by $80.9 billion annually to reach $2.4 trillion in Q3. New mortgage originations down by 9.5% annually.

– TRREB: Toronto home sales rose in November 1.7% monthly after five months of declines. Though still 30% below 10 year average. New listings down 5.5% monthly. Prices fell for the fourth straight month in November. Home price index was $1,106,600, a 1.7% decline from October.

– Statistics Canada: Unemployment rate rose to 5.8% in October in a further sign that the economy is continuing to feel the impact of interest rate increases by the central bank.

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