April 30th, 2019 Mortgage Industry Update
The Bank of Canada announced on April 24th that it’s overnight lending rate will remain at 1.75%. The prime rate remains 3.95%. The common prediction currently stands that the Bank of Canada will likely keep rates consistent for 2019.
Additionally this week:
– Zoocasa: You would need to be in the top 25% of income earners in both Toronto and Vancouver to afford a typical condo in those cities ($656,900 and $522,300, respectively). Need to be in top 10% of Toronto’s earners to afford a detached home at the benchmark price of $873,100.
– According to the Bank of Canada, private lenders have doubled their share of the mortgage market since 2015, accounting for eight per cent of Canadian mortgages in 2018, and an even greater share in the hot real estate market of Toronto.
– IMF Global Financial Stability Report: Canada has replaced the U.S. as a high-risk housing market. While lower household debt and cheaper home prices have lessened risk in the U.S., an influx of cash from foreign buyers has significantly increased risk in Canada.
– BMO survey: 42% of first-time buyers say the Canadian housing market is affordable. Shows growing sentiment among potential new entrants to the housing market but with household debt, interest rates challenging buyers, they will be looking for friends, family to help them out.
– Bank of Canada stands still on the overnight rate at 1.75%. Good news for variable rate mortgage holders as there is no expected change in prime rates!
– TD’s Spring Homebuying Survey: Of 8 in 10 millennials who aspire to own own home, 2/3 are willing to forego the conveniences of city living in exchange for a home that meets their needs in the suburbs. Four years ago, 38% of millennials preferred to live in city vs. 33% today.
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.Share this post on: Connect with us on: