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


July 9th, 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:

– Bank of Canada: As of Q1, 12.9% of new mortgage borrowers opted for a variable-rate mortgage. Up from low of 4.2% reached in Q3 2023, but down from peak of 57% of originations reached during the pandemic when most variable rates were available for less than fixed-rate products.

– Three of the nine central banks overseeing the 10 most heavily traded currencies reduced their lending benchmarks in June. The Bank of Canada joined other major central banks in easing policy, alongside Switzerland, which delivered its second rate cut in the current cycle.

– Statistics Canada: Canada’s economy expanded by 0.3% in April amid a rebound in several industries – but likely slowed to a growth pace of 0.1% in May. GDP likely to jump 1.8% in Q2 if June output is unchanged, slightly above Bank of Canada and economists’ expectations.

– BILD: 936 new home sales across the Toronto region in May, comprised of 539 condominium units and 397 single-family homes. Condos – 75% drop in sales compared to May 2023, in the most pronounced change in the data. Sales of new single-family homes were down 65% year over year.

– CIBC: 36% of first time homebuyers in Ontario are using gifts to cover all or a potion of their down payments. That is 5% more than the national average and represents a jump from a similar study in 2021 – resulting 31% at that time. Average gift received now up to $128,000.

– Deloitte Canada economic outlook: GDP growth of 1.2% in 2024, slightly higher than 1.0% growth called for in April. 2025 calling for 2.6% growth, down from 2.9% previously. Calls for another two rate cuts this year. By 2025 end – predicting BoC benchmark rate down to 2.75%.

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