September 11th Mortgage Industry Update
September 11th, 2018 Mortgage Industry Update
The Bank of Canada announced on September 5th that it’s overnight lending rate will remain at 1.50%. The prime rate thus remains 3.70%. Good news for variable rate mortgage holders as they can expect no changes to their rates! The common prediction currently stands at another rate increase for October’s meeting.
Additionally this week:
– Realosophy: Approximately 28% of GTA properties listed for sale through Toronto’s MLS are empty, up 17% from 2017. Many of these properties are in the low-rise category, especially in the 905 region. Increased vacancy due to stubbornness among sellers with price expectations.
– Bank of Canada maintains overnight rate target at 1.50%! No change in prime rate present, good news for any variable rate mortgage holders!
– RE/MAX: Nearly 51% of Gen Z residents (age 18 to 24) in the GTA would like to own a home in the next five years. The Canadian Gen Z population is expected to outnumber Millennials within the next year.
– Rider Levett Bucknall crane index: The number of Toronto’s cranes (97) far outstripped that of North America’s second most active market in Q2 2018 – Seattle, with just 65 cranes. Chicago came at third with 40 cranes. Residential towers accounted for 86% of Toronto’s Q2 projects.
– CMHC: During the first half of 2018, overall mortgage arrears rate decreased from 0.29% to 0.27% and the average homebuyer had a credit score of 754. Typical homebuyer bought a home costing almost $271,000 with most choosing a 25-year amortization with 80% preferring a fixed rate.
– StatsCan: Canadian economy expanded by 2.9% in Q2, as the housing market finally adjusted to the effects of a new mortgage stress test. Real estate investment had dropped 2.7% year-over-year in Q1, but a boost in national home sales led to a 0.3% year-over-year increase in Q2.
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.