October 11th, 2016 Mortgage Industry Update

The Bank of Canada announced on September 7th that it’s overnight lending rate will remain at 0.50%. The prime rate remains at 2.70%. Almost all fixed rates remain stable ahead of the autumn season.

Additionally this week:
– IMF estimates the Canadian GDP to grow by 1.2 per cent in 2016 and 1.9 per cent in 2017. Down from earlier predictions.

– Genworth Canada: 1/3 of its 2016 insured clients would have had difficulty qualifying under the new requirements of HR mortgages <20% down.

– TREB: Housing sales in Toronto area continued to soar last month, with the average price rising 20.4% from September last year to $755,755.

– August 2016 saw a 24% year-over-year growth in Toronto’s sales volume, with the avg price for all property types up by 18% to $710,410.

– Real Estate Board of Greater Vancouver: home sales in Metro Vancouver in September plunged by 32.6% compared to the same month last year.

– REP Poll: The majority (60%) of Toronto-area realtors believe a potential tax on foreign homebuyers in city would have a negative impact.

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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