October 22nd Mortgage Industry Update
October 22nd, 2019 Mortgage Industry Update
The Bank of Canada announced on September 4th 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 the remainder of 2019, with the small possibility of a rate decrease.
Additionally this week:
– RBC survey: 55% of non-retired Canadians aged 50+ expect to leverage equity in their home as a source of retirement income (up from 49% in 2018), with 52% stating they would downsize or rent instead of owning to bring in more income if needed in retirement (up from 36% in 2018).
– Royal LePage study: Newcomers to Canada account for around 21% of home purchases nationwide. This category covered immigrants, refugees, foreign students, and those who are here for work. On average, the study’s respondents stayed in Canada for around four years.
– CREA: 0.6% increase in home sales in September compared to August. 15.5% increase in actual activity compared to 2018. Sales through MLS were 18% above the low seen in February but 8% below the highs of 2016 and 2017. National average price for homes $515,500, up 5.3% from 2018.
– Statistics Canada: Addition of almost 54,000 jobs last month and shrinkage of national unemployment rate to near-record low of 5.5%. Outstripped earlier predictions of 7,500 new jobs and flat unemployment rate in September. Year-to-date, Canada saw 358,100 new employees.
– Royal Lepage: Average price of condo in Mississauga was $455,243 in Q3 2019, up 9.6% from 2018. Beat out Brampton and Whitby, where condo prices posted gains of 7% + 6.1%. Toronto saw 9.2% increase to its average condo price; second biggest increase in region during Q3.
– Statistics Canada: 82.2% of population growth seen in 2018/2019 stemmed from immigrants (313,580), non-permanent residents (171,536); highest volumes ever recorded. National population expanded by 531,497 to 37.6 million in July, greatest year-over-year increase since 1970s.
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.