April 23rd Mortgage Industry Update
April 23rd, 2015 Mortgage Industry Update
The Bank of Canada announced on April 15th that it’s overnight lending rate will remain at 0.75%. The prime lending rate at most lending institutions thus remains at 2.85%. Additionally, most fixed rates are stabilizing due to the bond market.
Additionally this week:
– The Bank of Canada governor Stephen Poloz in New York said ” that the 0.25% cut has seem to done its job.” Strong hint there will be no further cuts.
– There were minor rate cuts with a few lenders across their 5 year promotional mortgage rates.
– Report from Re/Max shows that first-quarter home prices in Toronto and Vancouver increased sharply. Vancouver: 7% increase, Toronto: 8%.
– Condo supply in the GTA has increased in the past year, with a 42% y/y jump in the number of newly completed and registered condo units.
– Royal Le Page says that the Canadian housing market has hit the predicted soft landing with price increases now slower-than-normal.
– Colliers International Canada advises “caution” for Vancouver, Calgary and Ottawa office markets. Vancouver: over supply, Calgary: lower oil, Ottawa: public sector downsizing.
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.