January 24th Mortgage Industry Update
January 24th, 2017 Mortgage Industry Update
The Bank of Canada announced on January 18th that it’s overnight lending rate will remain at 0.50%. The prime rate remains at 2.70%. CMHC has announced that its rate premiums will rise on March 17th. Many fixed rates are predicted to rise slightly.
Additionally this week:
– Bank of Canada maintains overnight rate target at 1/2 per cent. Great news for variable rate holders; will be no change in rates!
– Urbanation: Average condo rents in last 3 months of 2016 up 11.7% compared to 2015 with renters paying almost $2,000. Up from 4.2% in 2015.
– CMHC increasing loan insurance premiums effective March 17. Average homebuyer will see a $5 increase to their monthly mortgage payment.
– CREA: Home sales down 5% last month compared to December 2015. National average sale price up 3.5%.
– Royal LePage: Canadian residential real estate markets saw 13% year-over-year increase (to $558,153) in Q4 2016— greatest in over decade.
– Finance Minister: Ottawa will continue to monitor the housing market but is not planning to introduce any further measures for now.
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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2 August 2017Despite the troubled times in the housing markets, banks are continuing to make home loans to qualified borrowers and to refinance existing mortgages.