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 4th, 2024 Mortgage Industry Update

The Bank of Canada announced on April 10th that its overnight lending rate will remain at 5.00%. The Bank expects CPI inflation to be close to 3% during the first half of this year, move below 2½% in the second half, and reach the 2% inflation target in 2025. The prime rate remains at 7.20%.

Additionally this week:

– Royal LePage survey: 50% of participants would consider relocating to one of Canada’s more affordable cities if they could find a job or work remotely. The willingness to relocate was even higher among renters in the region at 60%.

– BILD: Sales of new builds plummeted 56% annually in April and are 65% lower than 10-year average. Total new home remaining inventory stood at 20,092 units. Includes 16,478 condo units and 3,614 single-family homes. One of highest inventory levels for new properties in last decade.

– Toronto will allow townhouses and small apartments on the majority of major streets after city council voted to approve the move. Before change, townhouses and small apartments were only permitted in designated areas across city. Now up to six-storey apartments can be built.

– OSFI says high borrowing costs and a wave of expected renewals in the coming 18 months pose key risks to Canada’s financial system. With 76% of outstanding mortgages expected to come up for renewal by the end of 2026, says homeowners face the risk of payment shock.

– Statistics Canada: Toronto lost 93k people to satellite cities and other parts of the province during over the 12 months to July 1, 2023, driven by people under 40. More than 16k moved to other provinces, led by those between the ages of 20-39 as well as their preschool children.

– RBC, CIBC, BMO predict the first Bank of Canada rate cut in June. TD and NBC lean towards July. Scotiabank tentatively considering July now instead of initial September projection. Trading markets are fully pricing in at least a 25-basis-point cut by the July 24 decision.

– While Canada’s economy is still expected to enter a technical recession this year, Oxford Economics now believes the downturn will be less severe than initially thought. The firm said it expects that GDP growth will contract in Q2 and Q3 before turning positive again in Q4.

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