December 1st, 2020 Mortgage Industry Update
The Bank of Canada announced on October 28th that its overnight lending rate will remain at 0.25%. The prime rate remains 2.45%. The Bank of Canada suggests that they will more than likely keep rates at this “effective lower bound” until 2023, as they observe the full effects of the pandemic.
Additionally this week:
– CMHC’s quarterly financial report: It had deferrals on 5% of its entire portfolio of insured mortgages since September 30. That’s a decline from approximately 8% in August. 76% of the jobs lost in the first two months of the pandemic have been recovered as of September 2020.
– BILD: There were 4,254 new home sales throughout the GTA in October, about even with the 10 year average, but down 10% from 2019. 2,340 condo sales – down 20% from 10 year average, 32% from 2019. 1,914 single sales – up 42% from 10 year average, 44% from 2019.
– Money.co study: Canadians most often buy their first homes when they are around 36 years old. The average Canadian buyer has a budget of $317,514 – assuming an average annual salary of $70,557. However the average home sale price is at $361,687.
– TransUnion report: Around 3.1 million Canadians reportedly took advantage of payments deferrals since the pandemic began, but a majority presumably used the excess cash to pay down credit card balances and other debt.
– Canada Revenue Agency: No demographic or income bracket was spared by economic ravages of pandemic, more than 128k applicants to federal emergency financial assistance programs were $100k+ earners. 114,620 individuals had incomes between $100k-$200k. 14,070 made more than $210k.
– The Teranet-National Bank House Price Index was up 1.3% from the previous month, the strongest gain for a month of October in the 22 years of the composite index. The rise was 8.1% from a year earlier. The rise was 1% in the City of Toronto.
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: