May 28th Mortgage Industry Update
May 28th, 2019 Mortgage Industry Update
The Bank of Canada announced on April 24th that it’s overnight lending rate will remain at 1.75%. The prime rate remains 3.95%. The common prediction currently stands that the Bank of Canada will likely keep rates consistent for 2019.
Additionally this week:
– CMHC: 223,000 new mortgage loans in Canada in Q4 2018, 4.8% lower than 2017. Even as number of loans fell, average value of all mortgages in Canada reached $209,570, which is more than 3% higher than a year ago. At a city level, mortgage originations declined by 1.3% in Toronto.
– Schroders ranks Toronto 19th in its Global Cities Top 30, outranking cities including Dallas, Miami, Tokyo, and Brisbane. However, Toronto has slipped two spots from 2018.
– CIBC study: Estimates that Canada has shortage of about 300,000 housing units because of the way it doesn’t count students within numbers. If policymakers want to help solve housing affordability crisis, they should start by building rental housing near colleges, universities.
– PadMapper report: In May, Toronto once again had the most expensive one-bedroom apartment rents in the country, this time at a median of $2,250, down 0.4 percent — or $10 — from the previous month. Toronto one-bedroom rents are now up 8.2 percent from a year ago.
– CREA: Home sales last month were up 4.2% compared with 2018, when they hit a 7 year low for the month. Sales up 3.6% on a month-over-month basis. National average price for homes sold in April was $494,978, up 0.3% from the same month in 2018.
– Latest federal census: Between 2001 and 2016, the number of households with at least three generations in the same home increased by over 37%, becoming the fastest-growing housing category in Canada. Amount Canadians spend on renovations has risen 46% between 2008 and 2017.
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.