April 11th, 2017 Mortgage Industry Update

The Bank of Canada announced on March 1st 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:
– Ontario Premier Kathleen Wynne: Rent doubling is ‘egregious,’. Promises rent control to come soon from Ontario government.

– RBC Housing Trends and Affordability Report: National housing affordability levels for Q4 2016 remained essentially unchanged from Q3.

– Conference Board of Canada: Non-residential construction output to expand by 3.7% this year; increased investment in warehouses, hotels.

– Transparency International: Canada is one of four countries where loopholes in the law make it easy for corruption in real estate markets.

– Mayor John Tory: Vancouver recently implemented vacant home tax, I am open to exploring whether this would be the right measure for Toronto.

– As of last month, the average price of a detached home in Toronto increased by 35 per cent year-over-year to around $1.5 million.

– Premier Wynne: Finance Minister Charles Sousa is looking at range of supply + demand issues because housing affordability is “huge issue”.

– The Ontario government has announced plans to appoint a new standalone regulator for new home building in the province, outside of Tarion.

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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