April 2nd Mortgage Industry Update
April 2nd, 2019 Mortgage Industry Update
The Bank of Canada announced on March 6th that it’s overnight lending rate will remain at 1.75%. The prime rate remains 3.95%. The common prediction currently stands at the Bank of Canada might either keep rates still for 2019, or the potential for one further increase.
Additionally this week:
– Experts see signs that mortgage interest rates in Canada may continue dropping this year. BMO Senior Economist points to the fact that five-year government bond yields have been declining, a key indicator for where five-year fixed mortgage rates are headed. Others agree.
– BILD: February year-over-year benchmark price for new single-family homes was $1,122,682, down 8%, and the benchmark price of new condominium apartments was $792,709, up 8.6% over the last 12 months.
– BILD: Total of 772 condo units sold across GTA in February, down 58% from 2018 and 51% from the 10-year average. Benchmark asking price of new condo was $792,709, up 8.6% from 2018. Newly-built single-family homes up 147% to 639 from 2018, but still down 50% from 10 year average.
– TREB: New budget still falls short of providing the much needed relief to homebuyers. Calling on policymakers to revisit mortgage stress test and also recommending extending the maximum amortization period for insured mortgages to 30 years, up from the current 25 year cap.
– Zoocasa survey: Majority of Canadians (58%) agree that spring is the best time to sell a home, while 42% say it’s the ideal environment for making home purchases. Approximately 6% say that they will be selling their homes, while 11% indicate that they will be buying a residence.
– New Federal Budget: Raising maximum amount first-time buyers can withdraw from RRSP to $35k from $25k. CMHC to provide interest free loans of 5-10% to households with incomes under $120k, mortgages no more than 4x income. Government would recoup its costs when the house is sold.
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.
