September 29th, 2015 Mortgage Industry Update

The Bank of Canada announced on September 9th that it’s overnight lending rate will remain at 0.50%. The prime rate remains at 2.70%. Additionally, most fixed rates remain stable.

Additionally this week:
– Business Insider: Starbucks to lend its UK staff 0% interest loans to help them put down payments on homes, since affordability in the UK is minimal.

– First National, and TD Bank increase their promotional variable rate to 2.20% (Prime-0.50%).

– TD Bank releases interest rate forecast: Overnight rate to remain at 0.5% until 2017, then rise to 1.25%, increase to 2%-2018 and to 3%-2019.

– CIBC report: Value of loans underwritten by alternative lenders grew by a staggering 25 per cent over the past 12 months.

– RBC is forecasting one of the best years on record for the housing industry (sales up 5%, prices 4.6%), saying softening will occur in 2016.

– Justin Trudeau promises to re-establish the long-form census with the hopes of better understanding just how prevalent foreign investment is.

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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