August 2nd Mortgage Industry Update
August 2nd, 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:
– Toronto Mayor: No hurry to make a decision on cooling foreign investment with measures like those that will apply in BC.
– TD Bank: New BC foreign investment tax could result in 5% drop in average prices, 20% drop in Vancouver residential home sales.
– CMHC housing market assessment: 9 markets now considered at risk from rising prices. 60% of the top 15 cities monitored = homes overvalued.
– BILD: Availability of new homes in Toronto (June 2016 = ~1000) has declined to just a tenth of what it was compared to June 2006 (10,823).
– Federal housing minister: Canadians will have input on country’s long-term housing strategy via convened discussion + online consultations.
– Calgary housing vacancy reaches 12-year high; 67% year-over-year increase to 20,800 units (April 2016). Total vacancy rate of 4.3 per cent.
– B.C. to bring in 15% additional property transfer tax on foreign buyers starting Aug 2. Applies to residential homes in Metro Vancouver.
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.