November 1st, 2022 Mortgage Industry Update
The Bank of Canada announced on October 26th that its overnight lending rate will increase to 3.75% from 3.25%. Inflation globally and in Canada continues to rise. Central banks around the world continue to tighten as well. The prime rate has increased to 5.95% from 5.45%. The Bank of Canada suggests that they will more than likely continue to raise interest rates as necessary to tackle higher than anticipated inflation rates.
Additionally this week:
– The Municipal Property Assessment Corporation (MPAC), which also determines the assessed value for all Ontario properties, says between the mid-90’s and early 2020, the average condo has shrunk 35 per cent, moving from 1,100 square feet to just 700 square feet.
– Bank of Canada increases overnight rate to 3.75% from 3.25%. Inflation globally and in Canada continues to rise. Central banks around the world continue to tighten as well. The prime rate has increased to 5.95% from 5.45%.
– Ontario government has announced that it will be doubling maximum fines for new home builders and sellers who cancel a project or purchase agreement without due cause. Penalties will be from $25k to $50k per violation. Repeat violations could face fines of $100k (up from $50k).
– Teranet–National Bank National Composite House Price Index: Home prices fell (3.1% monthly) for a fifth consecutive month in September, breaking the previous record set in August. This marked the largest monthly decline since the index was first started in 1999. Annual gain of 6%.
– Zoocasa: Cost to rent apartment is still cheaper than average mortgage payment in 11/15 major Canadian cities. Average price of Toronto condo is $769k, with average monthly mtg payment of $3,335. Still 45% more expensive than average monthly rent for 1 bedroom apartment – $2,303.
– Sotheby’s International Realty Canada: The GTA saw a 42% annual deceleration in residential real estate sales valued at more than $4 million during Q3. Sales valued at more than $1 million also declined by 39%.
– Canada’s annual rate of inflation was 6.9% in September (downwards from 7.0% in August), marking a third consecutive monthly decline but still coming in higher than most economists had anticipated. Economists had predicted ahead of the announcement that it would fall to 6.7%.
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.
