October 5th Mortgage Industry Update
October 5th, 2021 Mortgage Industry Update
The Bank of Canada announced on September 8th that its overnight lending rate will remain at 0.25%. The prime rate remains 2.45%. The Bank of Canada suggests that they will more than likely keep rates at this “effective lower bound” until the later half of 2022 now, as they observe the country’s recovery from COVID-19.
Additionally this week:
– BILD: Condo apartments now dominant residential asset class in GTA. The property type accounted for 3,162 homes sold in region in August. This level represented “the highest number of condominium apartments sold in August on record – up 35% annually. 129% above 10-year average.
– Engel & Völkers: As much as 80% of luxury home sellers in North America over the next 15 months will be millennials and Gen-Xers. Estimated that at least 65% of millennials with household income levels of $250,000 and above are planning to sell a home in 2021 or 2022.
– Equifax Canada: The 90+ day mortgage delinquency rate fell by 32.6% annually in Q2, while the rate for non-mortgage products dropped by 28.6% during the same period. On average, the Equifax credit score for consumers grew by 12 points over the last two years.
– CBRE Group Inc: Office vacancies in Canada were at the highest level in decades this quarter as new supply continued to come onto the market. National office vacancy rate hit 15.7% in Q3, up from 15.3% last quarter, for the highest level since 1994.
– Canadian Housing Statistics Program: Number of non-owner occupied investment properties in Ontario increased by 34,915 annually in January 2020. Non-owner properties comprised 23.2% of all owned residential properties at the start of 2020 compared to 22.7% the year prior.
– Statistics Canada: Share of homes owned by non-residents in 2020 was stable in Ontario (2.2%), New Brunswick (2.9%). Decreased in British Columbia (from 3.2% to 3.1%) and Nova Scotia (from 4% to 3.6%). Toronto saw this share grow from 2.6% in 2019 to 2.7% in 2020.
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.