September 1st Mortgage Industry Update
September 1st, 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 remain stable.
Additionally this week:
– Recent stock market turmoil causing speculation that the US Fed will push its planned rate hike to a later date.
– Increased interest generating from American lenders for mortgages in Canada, due to the low dollar. Great upside potential for returns.
– RealNet Canada says that almost 11,000 condo units were sold in the first half of 2015, the third best year on record.
– TD Bank announces 7.5% rise in profits to $2.3 billion. Saw stronger performances from their retail businesses including mortgage lending.
– BoC’s Lawrence Schembri: Canada’s housing market, despite hot spots, is not significant risk to economy due to regulation of mortgage lending
– CMHC now insures $534 billion of home loans; down $17 billion from year ago, down $9 billion from 2014, due to decreased risk portfolio
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.