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 25th, 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:

– CREA: Benchmark price of a home was down 0.2% monthly in May, dropping to $714,300, with sales inching downwards by 0.6%. Number of newly listed properties on the market was up by 0.5% in a slight boost for homebuyers who’ve seen options constrained by a lack of supply.

– Demographia ranks two Canadian cities among most expensive in world based on median home price to income ratios. Vancouver scored 12.3 on affordability metric, third-highest ranking globally, while Toronto came in at 9.3, placing it 11th on list of least affordable cities.

– Statistics Canada: Household net worth rose to a record high of nearly $17 trillion in Q1. That is a 3.3%, or $548 billion, increase over Q4 2023 and is the second quarterly increase in a row. 90% of all net worth is held by homeowners.

– CMHC: 68% of borrowers who left alternative lending space in 2018 had moved back to more mainstream options. Fell to 46% last year. Canadians who are having to sell their property to exit alternative space has also spiked, jumping to 54% in 2023 from 32% five years previously.

– Equifax Canada: In the first quarter of this year, over 1.26 million Canadians missed a credit payment, a 12.2% increase from the same period last year. Additionally, more than 34,000 Canadians missed a mortgage payment, marking a nearly 23% rise from the first quarter of 2023.

– Wahi: Last month, 36% of GTA neighbourhoods were in overbidding territory, which declined for second month in a row, after being at 39% in April and 43% in March. A year ago, it was significantly higher at 68%. About 60% of GTA neighbourhoods were in underbidding territory.

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