July 26th, 2016 Mortgage Industry Update

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

Additionally this week:
– BILD: GTA Low rise homes have more than doubled in price in the past decade; average appreciation in past year= $100,000, price = $887,543.

– New Zealand’s central bank taking aim at investors by jacking the required down payment for an investment home to 40% to cool its market.

– Condo building in GTA is low risk says CMHC. Builders (79%) don’t start construction until the majority of homes are sold (at least 70%).

– BMO Economist: “Your home made more than you did last year”. Average Canadian income= $49,565, average home sale price up by $56,369 in June.

– CREA: Benchmark price of Canada’s homes grew by 13.6% year-over-year in June 2016, up to $564,700. Greatest annual gain since 2006.

– CRA is investigating real estate transactions in British Columbia to search out tax cheats. Key areas: flipping, capital gains, rebates.

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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