September 15th Mortgage Industry Update
September 15th, 2020 Mortgage Industry Update
The Bank of Canada announced on September 9th that its overnight lending rate will remain at 0.25%. The prime rate remains 2.45%. The Bank of Canada has openly stated that it will more than likely keep rates at this “effective lower bound” for the immediate future until the effects of the pandemic are more clear.
Additionally this week:
– At the Big Six banks alone, Canadians have around 510,530 mortgages on payment deferral as of the quarter ending July 31, falling by 17.53% from the previous quarter. These postponed payments at the Big Six amounted to $136.27 billion, representing a 15.38% quarterly decline.
– Bank of Canada stands still on the overnight rate at 0.25%. Good news for variable rate mortgage holders as there is no expected change in prime rates!
– Equifax Canada report: Consumer debt in Q2 2020 rose 2.8% from the same quarter last year, reaching just short of $2 trillion. As home sales rebounded nationwide from March-April lows, average debt per person is now at $73,532, up 2.2% from the same time last year.
– Office of the Superintendent of Financial Institutions: Growth in the total volume of home equity lines of credit has stopped recently. Outstanding balance on Canadian HELOCs was at $304.95 billion as of June, falling by 0.9% annually and declining by 0.27% from the May level.
– Canada’s economy added 245,800 jobs in August, 4th straight month of gains that has recouped almost 2/3 of employment losses from pandemic. Lowered jobless rate to 10.2%, from 10.9% in July, and brings the number of jobs recovered since the height of the pandemic to 1.9 million.
– TRREB: The average selling price across the GTA rose 20.1% year-over-year last month to $951,404, setting a new record for a third consecutive month. Gains were most substantial in the detached property market, with the average selling price up 19.9% to almost $1.2 million.
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.