May 24th Mortgage Industry Update
May 24th, 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 and become stable.
Additionally this week:
– York Region awarded as one of Ontario’s highest appreciating regions in past year: April 2015 avg price: $772,287/April 2016: $939,299. Up 21.6%.
– CMHC: Average Canadian home price expected to continue to increase in the next two years. Doesn’t expect any sort of wide-scale correction.
– Royal LePage Survey: Advisors in Canada’s metropolitan areas believe that 25% of luxury properties have been purchased by foreigners.
– Benjamin Tal of the CIBC: Flipping tax would take care of “most problematic element of foreign investment in Canadian real estate.”
– The Canada Mortgage and Housing Corporation says that it will suffer limited impact from the devastating losses in the Fort McMurray area.
– A few rate changes:
First National decreases their 5 year fixed promotional mortgage rate to 2.59%, variable 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.