December 5th, 2017 Mortgage Industry Update

The Bank of Canada announced on October 25th that it’s overnight lending rate will remain at 1.00%. The prime rate remains the same. It is common prediction for rates to rise another 2 times by the end of 2018. Most fixed rates have risen significantly and are now in the 3%+ range.

Additionally this week:
– Toronto home prices have climbed 63 per cent over the last five years, with about half of that gain coming in the last two years, according to the Teranet-National Bank Home Price Index. In Vancouver prices have jumped 65 per cent over five years.

– Elevated housing prices and household debts remain the single-biggest vulnerability in the Canadian economy, according to the latest Bank of Canada report.

– In its latest study, the Ontario Securities Commission (OSC) found that majority of the province’s millennials view home ownership as a higher priority than investing, with 1 in 3 of them owning their residences already.

– CMHC: Vacancy rate in Ontario decreased to 1.6% in autumn of this year from 2.1% during the same period last year, and the average rent is now $1,140, up 3.8%.

– OECD: Canada’s economy is headed for much slower growth in 2018 and beyond as consumers react to sluggish wage growth, higher interest rates and a cooler housing market. The economy will grow 2.1 per cent in 2018 and 1.9 per cent in 2019, down from 3 per cent this year.

– BILD: As of the end of October, 39,476 new homes have been sold in the GTA this year, 82 per cent of them condo apartments in high-rise and mid-rise buildings and stacked townhomes.

 
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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