December 6th Mortgage Industry Update
December 6th, 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%. Many fixed rates have risen by 10-30 points due to the new mortgage rule changes.
Additionally this week:
– CMHC: Share of foreign ownership of condos remains low, with Toronto at 2.3% and Vancouver at 2.2%; both markets saw lower share than 2015. Foreigners represent small segment of home owners in country’s most active markets; not considered as main driver of price growth.
– TREB: GTA home sales in October increased by 11.5 per cent month-over-month, up to 9,768 units. Average selling prices up 21.1% to $762,975.
– CMHC: 26.8% rise in number of mortgages backed by insurance in Q3. Also slight increase in home equity; up to 34.8% from 34.4% in Q2.
– CMHC: Marked increase in the supply of apartments led to an increase in the national vacancy rate. Up to 3.4% in October from 3.3% last year. Year-over-year decline in the vacancy rate in Toronto and Vancouver, down to 1.3 per cent and 0.7 per cent.
– CREA: Ontario played host to the 10 most vibrant seller’s markets in the country last month. Cambridge top of list.
– Manulife survey: Over 16% of Canadians will not be able to service existing debts if their current mortgage payments increase in any way.
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.