August 4th, 2015 Mortgage Industry Update

The Bank of Canada announced on July 15th that it’s overnight lending rate will be cut to 0.50%. The prime lending rate at most lending institutions thus decreased to 2.70%. Additionally, most fixed rates are rumoured to decrease in due time, as the overnight rate influences the bond market.

Additionally this week:
– CMHC announced Monday that from September 28 it will allow 100% of the rental income from a secondary unit to be considered for new subject property mortgage applications

– CAAMP survey indicates 6% of buyers would not be able to purchase a home if mortgage downpayment requirements were raised.

– TD Economics: Arguing that the record-low rate environment has finally bottomed out. “It’s hard to imagine fixed rates going much lower”

– Saint John’s real estate investment rising. Average sales price in New Brunswick up by 3% and as much as 27% year over year from 2003-2009.

– US based real estate website Redfin states that home prices will rise by about 4.3% in July, but just 2.2% in August.

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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