June 30th, 2015 Mortgage Industry Update

The Bank of Canada announced on May 27th 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 have stabilized due to the bond market.

Additionally this week:
– Chief economist of RBC’s asset management division says there is a 35% chance that the BoC will make a further cut in interest rates

– New figures from Statistics Canada show that 69 per cent of families are now dual-income households

– The Canadian Home Builders Association calling for longer amortization periods for first-time buyers, which would make buying a home easier

– Affordability of homes across Canada was mostly unchanged in Q1 of this year compared to the end of 2014: RBC economics

– New poll for CIBC has found that two thirds of Canadians are comfortable with the level of debt including mortgages that they carry.

– Benjamin Tal of CIBC: foreign investment “largely misunderstood” and that foreign investors make up a small proportion of homebuyers

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.

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