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.

Contact

(416) 795-1919

Search Mortgage Corp. 100-50 Village Centre Place Mississauga, Ontario, L4Z 1V9 License #: 12652

harpreet@searchmortgage.ca

January 28th, 2025 Mortgage Industry Update

The Bank of Canada announced on December 11th that its overnight lending rate will be cut to 3.25% from 3.75%! The second consecutive cut of 50 bps. Marks the fifth back to back rate cut! Inflation has dropped below the 2% target now. We can expect further decreases. The prime rate now decreases to 5.45%.

Additionally this week:

– Statistics Canada: Annual inflation rate dipped to 1.8% last month as the federal government’s GST break helped push price growth lower, keeping an interest rate cut by the Bank of Canada next week firmly on the table.

– Statistics Canada: Outstanding balance of national household debt climbed  0.4% (+$13.0 billion) to $3.03 trillion in November. Annualized growth came in 3.9% (+$113.3 billion) higher than last year. Residential mortgage debt climbed 0.5% (+$10.6 billion) to $2.25 trillion.

– TD Bank: Nearly half of Canadians view inflation and the cost of living as their most significant financial challenges in 2025. Survey revealed that 49% of respondents cited these factors as their primary financial concern, marking a decline of 9% from last year’s findings.

– CREA forecasts 532,704 residential properties will trade hands in 2025. Represents boost from prediction last fall of a 6.6% increase. Expects national average home price to rise by 4.7% on an annual basis to $722,221 compared with its earlier forecast of a 4.4% increase.

– Sotheby’s International Realty Canada’s report: GTA led revival of Canada’s luxury real estate market, with sales of properties over $4M climbing 21% yearly in 2024. Single-family homes dominated, accounting for 91% of these transactions. Ultra-luxury sales above $10M rose 20%.

– Around 60% of outstanding mortgages are set to renew by the end of 2026, and about 60% of those renewals—or roughly 40% of all outstanding mortgages—are expected to face higher rates, according to research from the Bank of Canada.

– Royal LePage’s Q4 2024 House Price Survey: National aggregate home price increased by 3.8% yearly to $819,600. Quarterly gain of 0.5%. Modest gains were observed in Greater Toronto (+2.3%, $1,149,300) and Greater Vancouver (+0.7%, $1,229,000). Projects a 6.0% increase by Q4 2025.

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.

Author

Harpreet Singh