December 20th, 2016 Mortgage Industry Update

The Bank of Canada announced on December 7th 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:
– CREA: Sales next year are expected to be 518,900 units, a drop of 3.3 per cent compared with the revised forecast for 2016 (6.2% @ 536,700).

– BC Government launches new program. Will match down payment of eligible first-time buyers up to $37,500 with 25-year term second mortgage.

– Toronto Dominion bank has followed RBC in raising its main 5 year fixed mortgage rate to 2.94 per cent.

– Transparency International Canada: Government does not know who owns 46/100 most expensive properties in Vancouver (combined value over $1B).

– RE/MAX’s 2017 Housing Market Outlook: Home prices nationwide will climb by around 2% in 2017, GTA prices will increase by 8% next year.

– CBRE: Canada hit record level for commercial real estate sales in Q3 ($11.2B) and is on track to beat an annual record set during 2007 boom.

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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