November 30th Mortgage Industry Update
November 30th, 2021 Mortgage Industry Update
The Bank of Canada announced on October 28th 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 mid 2022 now, as compared to initially saying late 2022.
Additionally this week:
– IG Private Wealth Management report: Affluent Canadians with at least $1 million in investable assets have been giving each child an average of $145,000 towards the purchase of a first home. The number of affluent Canadians rose to 913,000 at the end of 2020 from 471,000 in 2006.
– Indeed Canada: Share of people actively looking for employment rose to 30% last month, up from 25% in September. Increase was largely driven by unemployed workers who described their search as immediate. 39% characterized the situation as “urgent,” up from 32% in September.
– The volume of new HELOCs being created increased by 56.7 per cent in the second quarter of 2021 compared to the same period the year before, according to a report from Equifax, the consumer reporting agency. That’s the highest volume reported in the last 10 years.
– Q3-2021 Housing Affordability Monitor from National Bank of Canada: Mortgage payment on an average home as a percentage of income rose 1.7 points after a 3.2-point increase in Q2-21. Benchmark mortgage rate (5yr term) was essentially unchanged. Median household income rose 0.8%.
– Baker Real Estate Incorporated: In 2020, only 1% of 39,000 new condo sales were with buyers from outside Canada, versus 3% during 2019. The largest foreign buyer contingent was from China, accounting for 2.3% of the 2020 total. Considerably lower than CMHC’s estimate of 2%-3.5%.
– The Teranet-National Bank Composite House Price Index, which tracks repeat sales of single-family homes in 11 major Canadian markets, remained unchanged in October from previous month. Price growth has been slowing for last 5 months. 7 of 11 major markets rose – only slightly.
– Statistics Canada: Canadian inflation climbed to the highest level in nearly two decades last month. Was up 4.7% annually, and from 4.4% in September. Economists were predicting 4.7%.
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.