February 28th, 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:
– Fitch Ratings predicted that Canadian mortgage rates will remain at record-low levels for the first six months of this year.

– BILD: A new record has been set in the Greater Toronto Area with the average single-family ground-oriented home now surpassing $1 million.

– Threshold for BC’s Property Transfer Tax exemption for first-time homebuyers has been increased to include homes up to $500k from $475k.

– Fitch Ratings: “Canadian home prices not supported by underlying fundamentals and the risk of price fall in over-valued markets has risen”.

– British Columbia home sales reached 112,209 in 2016; they’re forecasted to fall 14.1% this year to 96,345 before settling to 95,770 in 2018.

– CREA: Average home sale price nationwide stood at $470,253 in January, 0.2% year-over-year growth. Sales volume down by 1.3%.

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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