June 21st, 2016 Mortgage Industry Update

The Bank of Canada announced on May 25th that it’s overnight lending rate will remain at 0.50%. The prime rate remains at 2.70%. Most fixed rates have also stabilized.

Additionally this week:
– Introducing a new 5 year fixed promotional low rate of 2.49%!!!

– Bank of Canada: Economy expected to remain flat or shrink in second quarter of the year; will only show signs of “outsized recovery” by Q3.

– Simon Fraser University: 91% of Vancouver’s detached homes are valued at $1 million or more. Up from 59% in 2014, 19% in 2006.

– Financial Post report: Minimum down payment increase from 5% to 10% will not do much to cool non-stop price growth in Vancouver + Toronto.

– Conference Board of Canada provincial economic report: Ontario will enjoy 2.8% growth in GDP this year, 2.6% in 2017.

– CREA: National home sales fell 2.8% month-over-month; however, sales were up year-over-year by 9.6%. The MLS Home Price Index increased 12.5% year-over-year in May. The average home price for homes sold in May was $509,460, up 13.2% year-over-year. Toronto sales were up 9.9% year-over-year. The average price in May jumped 15.7% to $751,908.

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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