December 15th Mortgage Industry Update
December 15th, 2015 Mortgage Industry Update
The Bank of Canada announced on December 2nd that it’s overnight lending rate will remain at 0.50%. The prime rate remains at 2.70%. Additionally, almost all fixed rates have climbed ahead of the winter season cool-down, and increases in the bond market.
Additionally this week:
– REMAX: Price appreciation expected to continue into 2016; expected to increase 7% in Greater Vancouver and 5% in the Greater Toronto Area.
– New minimum mortgage down payment changes announced by federal finance minister. 5% down for first $500k, 10% down for amount between $500k-$1M. Also, announced that the Liberal government will roll back the annual TFSA contribution limit to $5,500,
– Bank of Montreal report shows 42% of first-time buyers expect help from family when it comes to a down payment – up from 12% in 2014.
– Statistics Canada: Value of residential building permits issued by municipalities in October increased 15.5% to $4.8 billion.
– CMHC: Reported urban housing starts increased by 7.7 per cent in November to 195,121 units.
– Federal finance minister: New income tax changes will take effect on Jan 1 2016. Incomes between $45,282 and $90,563 will pay 20.5%, instead of 22%.
– Bank of Canada Governor: Bank would be willing to cut benchmark interest rate to below 0% if country is faced with major economic shock.
– A few rate changes ahead of the winter season:
MCAP increases their 5 year variable promotional mortgage rate to 2.35%
Scotiabank increases their 5 year fixed promotional mortgage rate to 2.99%, from 2.89%.
National Bank increases their 5 year promotional variable mortgage rate to 2.50%.
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.