November 28th, 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:
– OECD report: Canada, South Korea and the UK are the top 3 nations for household borrowing; and Canada also has high corporate debt. Consumer debt in Canada is above 100% of GDP, the only country in which that is the case.
– Quebec plans to monitor the sale of property to and by foreign investors in the province by requiring the address of their primary residences in a bid to track overseas inflows into the real estate market.
– Liberals announce 10-year $40B National Housing Strategy aimed at improving housing affordability for Canada’s most vulnerable citizens. Aims to reduce “chronic homelessness” by 50%.
– Following the Bank of Canada’s rate hikes this year, ratings agency DBRS has warned that mortgage borrowers may be shocked to find their mortgage payments rise during renewal.
– Seymour Consulting survey: 43% said they were somewhat or extremely stressed by their current financial situation. A third said stressed about being able to meet mortgage payment or rent. Another third said concerned about their ability to buy a home in the next five years.
– British Columbia is introducing new rules from spring next year designed to strengthen consumer protection. Include banning dual agency (mortgage + realtor licenses), making BC the first province in Canada to do so.
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.Share this post on: Connect with us on: