May 3rd, 2016 Mortgage Industry Update

The Bank of Canada announced on April 13th that it’s overnight lending rate will remain at 0.50%. The prime rate remains at 2.70%. Most fixed rates have also slightly declined.

Additionally this week:
– Toronto saw 500 properties worth north of $2 million sold between January 1 and March 31 of this year.

– BMO Survey: Although 60% of millennials say they are tired of renting, 70% will wait until they can afford a home that meets requirements.

– National Bank: Six Canadian markets have shown better affordability for the first quarter of 2016. Montreal, Calgary, and Ottawa-Gatineau.

– TREB: Condo sales in the Greater Toronto Area surged 21.2 per cent in the first quarter of 2016 compared to a year earlier. Annual increase in listings down 1.7% for GTA condos. Average selling price increase of 8.1 per cent to $393,589.

– The average price of a newly-built single-family detached home in the Greater Toronto Area has exceeded $1 million for the first time.

– A few rate changes:
Scotiabank decreases their 5 year variable mortgage rate to 2.40%.
Home Trust increases their 5 year fixed rate to 2.59%, 5 year variable to 2.40%.
TD Bank decreases their 5 year variable mortgage rate to 2.35%.

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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