August 22nd, 2017 Mortgage Industry Update

The Bank of Canada announced on July 12th that it’s overnight lending rate will increase from 0.50% to 0.75%. The prime rate at almost all institutions has increased from 2.70% to 2.95%, the first increase in 7 years. Fixed rates have slightly risen over the last 4 weeks and seem to have stabilized now.

Additionally this week:
– Fraser Institute: Mortgage interest rates fell from 7% to 2.7% between 2000 and 2016 and increased the maximum mortgage for Canadians by 53%.

– Royal LePage: 87% of Canadians aged 25-30 believe home ownership is a good investment. 69% hope to own a home in the next five years.

– National Bank: HELOCs currently comprise around 45 per cent of consumer credit. The average outstanding balance on these loans was $70,000.

– National Bank economist: Home sales declined on a year-on-year basis in July in most large Canadian cities west of Ottawa.

– CREA: National home sales fell 2.1% from June to July and 11.9% year-over-year. Home sales are now down 15.3% from the record set in March.

– Teranet-National Bank House Price Index: Canadian home prices increased 2% in July, driven by continued increase in condo prices in Toronto.

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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