October 31st Mortgage Industry Update
October 31st, 2017 Mortgage Industry Update
The Bank of Canada announced on October 25th that it’s overnight lending rate will remain at 1.00%. The prime rate remains the same. It is common prediction for rates to rise another 2 times by the end of 2018. Most fixed rates have risen significantly and are now in the 3%+ range.
Additionally this week:
– The CRA analyzing 2,810 transactions involving cases of pre-construction condo flipping in Toronto to determine whether audits are needed.
– Census: Home ownership rates down; at age 30, 50.2% of millennials owned their homes, compared to 55% of baby boomers at same age in past. 13.3% of Canadian households (approx. 1.9M) live in a condo — up 1.2% from 5 years ago. Just over two-thirds were owners. 24.1% of Canadian households spend 30% or more of their average monthly total income on shelter costs.
– The Bank of Canada announces that it is holding the overnight rate steady after raising it twice this past summer.
– MNP Ltd. (leading insolvency firm) survey: 1/3 of Canadians indicated that they are already feeling the pinch of increasing interest rates.
– Century 21 Study: Metro Vancouver is home to 7/10 priciest neighbourhoods in Canada. Toronto’s Downtown, Oakville, Richmond Hill are 3/10.
– Sidewalk Labs, division of Google’s parent Alphabet, has signed deal with Waterfront Toronto to initiate plans for a $1B test “smart city”.
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.