May 19th, 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:
– Mortgage rates hold steady!
– CIBC poll conducted by Nielsen, found that 47 per cent of Canadians would prefer a medium-term (three-to-five-years) mortgage term.
– Panel of leading real estate market analysts argues that fixed rates will increase in next 30-45 days, due to recent bond yield increases
– Statistics Canada show that home equity credit lines now total $266B (as of March 2015) which has increased from $100B ten years ago
– April housing starts across Canada were down 9% from a year ago as increases in some urban centres failed to offset declines in the Prairies
– Economists at BMO Nesbitt Burns forecast that Newfoundland & Labrador will slip into recession this year but Alberta will narrowly avoid one
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.Share this post on: Connect with us on: