August 30th, 2016 Mortgage Industry Update

The Bank of Canada announced on July 13th that it’s overnight lending rate will remain at 0.50%. The prime rate remains at 2.70%. Most fixed rates have stabilized.

Additionally this week:
– Alberta builders to see moderate increase in activity in 2017 (5.7%) following major reduction (40%) in home building this year.

– REBGV: New tax curbing sales and limiting price gains. Sales fell 5% to 758 transactions in first 2 weeks of Aug from same period in 2015.

– BILD: Average price of a low-rise home in Toronto has increased by more than $100,000 year-over-year in July.

– RBC CEO: “Closely monitoring” the real estate markets in Vancouver and Toronto, where home prices have been climbing at a breakneck pace.

– Economy in Alberta on course for largest 2-year contraction ever and deficit nearing $11B. Contraction of 2.7% in 2016, 3.7% in 2015.

– The Fraser Institute Study: Average Canadian family spent more on taxes ($34,154) than food and housing combined ($30,293) last year.

 
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.

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