November 1st, 2016 Mortgage Industry Update

The Bank of Canada announced on October 19th 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:
– Federal government ran a deficit of $2.7 billion in August compared with a deficit of $2.3 billion in the same month last year.

– Urbanation report: Foreign buyers (5% of sales) play limited part in condo sales in GTA but investors play key role (52% of sales).

– In its latest analysis released late last month, real estate company Re/Max found that nearly 25% of Calgary’s office spaces are unoccupied.

– CMHC increased its risk rating for the national housing market on Wednesday to “strong”, from a “moderate” rating that it gave in July.

– PricewaterhouseCoopers report: Average size of Canadian homes will decrease in the next few years, especially in Vancouver and Toronto.

– TREB: Condo sales in GTA up 22.1% in Q3 2016 compared to the same period of 2015 but the market remains constrained by tight supply. Average condo prices up 9.6% to $415,643 in GTA in Q3 2016 compared to the same period of 2015.

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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