August 29th Mortgage Industry Update
August 29th, 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 now remain stable.
Additionally this week:
– RBC CEO: More measures to cool housing market may be needed if Toronto sees bounce-back in prices as Vancouver did even after foreign tax.
– Young home owners in Calgary possess more real estate than millennials in the rest of Canada, according to a Royal LePage survey.
– OREA: Fines should be doubled for realtors who break rules. Maximum fines for salespeople should increase to $50k, brokerages to $100k.
– Fraser Institute: Avg Canadian family spent 42.5% of their income on taxes in 2016, more than they spent on housing, other expenses combined.
– Calgary real estate market is expected to undergo a “process of recovery” for the rest of the year as oil prices improve – CREB.
– TheRedPin: A household will need annual income of more than $200k to afford Toronto detached home; average price sitting near $1.15 million.
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.