Ontario Mortgage Rates: June 2023

June 2023 -- Canadian Mortgage & Housing Market Snapshot

1) Bank of Canada rate decisions - Date: June 7, 2023 - Decision: Rate hike - Overnight rate: 4.50% → 4.75% - Change: +25 basis points - Rationale: The Bank said excess demand was proving more persistent than expected, inflation was not coming down quickly enough, and economic growth in the first quarter had been stronger than projected. It resumed tightening after the earlier pause. - Important context: June 2023 was a key turning point because the BoC resumed hikes after the conditional pause, surprising some market participants.

2) Mortgage rate snapshot -- June 2023 The broad June 2023 mortgage-rate picture was:

• Prime rate: moved up to about 6.95% after the June 7 hike
• Variable rates:
• generally moved into the low-6% to high-6% range
• depending on lender discounts and borrower profile
• 5-year fixed:
• generally in the mid-5% to high-5% range
• fixed rates remained elevated and sensitive to bond-market expectations
• Practical takeaway:
• June 2023 made borrowing more expensive again after a brief sense of stability
• variable-rate borrowers took another hit
• fixed-rate pricing also stayed very high by historical standards

Caveat: I did not find a single authoritative national source giving an exact Canada-wide “average 5-year fixed” and “average variable” for June 2023 only, so these remain approximate market ranges.

Canada (national) Month-specific reporting for June 2023 showed: - National home sales: down 1.5% month-over-month from May - National average sale price: about $709,218 - up about 6.7% year-over-year - Months of inventory: around 3.1 months - Interpretation: - sales eased slightly - prices remained firm year-over-year - inventory was still relatively low, keeping the market from loosening materially

GTA / Ontario proxy For TRREB / GTA June 2023: - Sales: 7,481 - Year-over-year sales change: +16.5% - Average selling price: $1,182,120 - up 2.4% year-over-year - New listings: 15,865 - down 5.9% year-over-year - Interpretation: - GTA sales remained stronger than the prior year - prices stayed above $1.18 million - low listings continued to underpin the market despite higher rates

Ontario-wide I did not find a clean primary Ontario-wide June 2023 housing dataset in this run that I’m comfortable quoting directly. The strongest Ontario-specific evidence here remains TRREB / GTA.

Major policy development - June 7, 2023: BoC resumes tightening with a 25 bp hike to 4.75% - This mattered because: - it reversed the sense that the pause would necessarily continue - mortgage-market expectations reset higher again - variable-rate borrowers faced immediate additional pressure ### OSFI / FSRA / federal - I did not verify a separate major OSFI, FSRA, or federal mortgage-rule shock landing specifically in June 2023 that rivaled the BoC hike - So the dominant June policy story was: - the BoC’s resumed tightening

5) Private / alternative lending -- June 2023 I did not find a clean Ontario-only private-lending data release for June 2023 in this run.

Best month-specific characterization - as rates rose again and mainstream qualification remained tight, private and alternative lending likely stayed relevant for: - borrowers failing requalification - borrowers under renewal/payment stress - buyers unable to qualify at prime lenders - But I do not have a clean June-only Ontario metric to quote directly - The main market story remained: - demand holding up better than expected despite higher rates ## 6) Notable events -- June 2023

Major headlines - June 7: BoC hikes 25 bps after the pause - National sales slip modestly - but prices remain positive year-over-year - GTA market stays firm - sales up year-over-year - prices still above $1.18 million - Low inventory remains a key force - helping keep prices elevated even under higher rates

What defined June 2023 The defining themes were: - resumed tightening - high borrowing costs - still-firm housing demand - limited supply - price resilience despite the rate environment

Fraud / court / lender events - I did not find a single clearly dominant mortgage fraud case, lender collapse, or court ruling that I could confidently verify as a defining June 2023 mortgage headline in this run

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Bottom line for June 2023 - BoC: hiked from 4.50% to 4.75% on June 7 - Mortgage rates: remained very high; variable rates moved into the low/high-6% range and fixeds into the mid/high-5% range - Housing market: held up better than expected - Canada: average price about $709,218 - GTA: 7,481 sales, average price $1,182,120 - Policy: the defining June event was the BoC resuming hikes - Alternative lending: likely still relevant at the margin, but no clean June-only Ontario figure verified ## Sources - Bank of Canada -- June 7, 2023 decision - CREA June 2023 release title / month-specific market reporting - TRREB market-watch references / June 2023 figures surfaced in search results - Secondary coverage summarizing June 2023 GTA data: - - - Rate references - - -

Caveats - You asked for June 2023 only, so I kept this month-specific. - I could verify the BoC June 7 hike strongly from the primary source. - I relied on month-specific market reporting and search-result evidence for national and GTA figures; I did not directly extract a clean primary Ontario-wide dataset in this run. - I also did not find a single authoritative national “average 5-year fixed / average variable” series for June 2023 only, so the mortgage-rate section remains an approximate market snapshot rather than a precise official average.