April 4th, 2023 Mortgage Industry Update
The Bank of Canada announced on March 8th that its overnight lending rate will remain at 4.50%. This was the first hold-still since they started increasing rates a year ago. Inflation has started to inch lower. Latest data remains in line with the expectation that inflation will come down to around 3% in the middle of this year. Prime remains at 6.70%.
Additionally this week:
– Ontario government is undertaking consultations on the implementation of a cooling-off period for new freehold home sales. Announced intention to seek input on whether it should be mandatory to receive legal advice before signing a purchase agreement for a new home.
– Statistics Canada: In January, the economy expanded 0.5 per cent on a monthly basis. The growth followed a relatively weak year-end quarter. The Canadian economy is now on track to expand at an annualized rate of 2.8 per cent in the first quarter.
– Joe Debtor study found that on a per-population basis, millennials were 1.4 times more likely to file for insolvency than people in generation X aged 42 to 56, and 1.7 times more likely than baby boomers aged 57 to 76.
– A press release by Royal LePage said it expects the national aggregate house price to drop 4.5 per cent in the recreational market this year. Forecasted the price of a single-family recreational home will fall to $592,005, from $619,900 in 2022.
– Government of Canada announces a series of amendments to the foreign buyer ban to expand the exceptions to the regulations, some of which have become an unintended pain for developers across the country. The four amendments to the foreign buyer ban are effective immediately.
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.