October 18th, 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 at this point despite new recent mortgage rule changes.
Additionally this week:
– CREA: Federal government’s recent changes to mortgage lending rules have injected uncertainty into the Canadian real estate market.
– CREA: Number of home sales edged higher (0.8%) in September compared with August, ending a streak of month-over-month decreases.
– Angus Reid Toronto poll: Implementing a 15% tax, similar to Vancouver’s, would have the support of 77% of respondents with 40% “strongly” supporting
– Royal LePage report: Canada’s real estate market grew during Q3; avg home price increased 12% to $545,414. Comprised of data in 53 markets.
– HuffPost: Young professionals, starting families to face greater challenges purchasing homes. New rules = lose 20% of purchasing power.
– Statistics Canada data: 9.6% rise in value of residential building permits issued in August, compared with July, with total value of $4.5B.
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.Share this post on: Connect with us on: