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 18th, 2024 Mortgage Industry Update

The Bank of Canada announced on June 5th that its overnight lending rate will be cut to 4.75% from 5.00%! Officially the first rate cut in over 4 years! Recent data has increased confidence that inflation will continue to move towards the 2% target. The prime rate decreases to 6.95% across lenders.

Additionally this week:

– Leger survey: Four in 10 Canadians believe Bank of Canada should be cautious with further rate cuts, while another third believe Bank is not lowering rates quickly enough.  Respondents from wealthier households were more likely to favour a cautious approach by the bank.

– Canadian building permits rose 20.5% monthly in April. More than 4X the expectation of economists. Fastest monthly pace since May 2020. Excluding the pandemic, it marked the quickest gain since March 2009. Residential permits jumped 19.6%. Permits in Toronto rose 34.3%.

– On an annual basis, May home sales were down by double digits in Toronto (+12.7%) and Vancouver (-19.9%), and unseasonably slower in Ottawa (-9.2%) and Montreal (+4%). Calgary remained the exception with sales up 7.3%. Buyers remained in a wait-and-see mode in May.

– Dye & Durham’s Canadian Pulse Report for Q2 2024: 38% of respondents have waited to make a major purchase in the past year due to high interest rates. Of the 42% who expect to make a major purchase once rates begin to decline, 57% plan to wait for significant cuts first.

– Statistics Canada: Country added 26,700 jobs in May and jobless rate rose 0.1 percentage point to 6.2%. Figures were slightly stronger than expectations for a gain of 22,500 positions and matched the expected unemployment rate. Unemployment rate has trended up since last April.

– Rentals.ca report: Average rents across Canada are up 32% from pandemic lows. Average asking rent in May was $2,202, up $200 monthly and 9.3% yearly. Rent prices have been climbing steadily in recent years, rising $540 or 32% since hitting their low of $1,662 in April 2021.

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