September 6th, 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:
– Trimart Research Corporation report: Toronto low-rise sales dropped by 27.1% on a year-over-year basis and 38.5% month-over-month in July.

– Reuters poll: Real estate prices estimated to grow by an average of 15% (Vancouver) and 22% (Toronto).

– Royal LePage survey: Generation Xers most active buyers of recreational real estate in Canada. Purchasing twice as many cottages.

– Bloomberg Research: Red-hot housing markets + vigorous bank lending now comprise 20% of the Canadian economy.

– Altus Group report for BILD revealed that high-rise sales (including condos) in the GTA rose by 25 per cent year-over-year in July.

– CMHC financial results for Q2 2016: Warning over rise in mortgage arrears in Alberta (52% rise in mortgages with arrears of at least 3 months).

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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