February 11th, 2020 Mortgage Industry Update
The Bank of Canada announced on January 22nd 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 early 2020, with the next major move likely being a rate decrease.
Additionally this week:
– First-time home buyer incentive data: In total 3,252 applications were made to CMHC, with 2,730 accepted, last year. Total amount of money lent to homebuyers totalled $51.3 million. Ontario saw only 436 applications across the whole province. GTA saw only 148 applications.
– BILD and Altus Group: The number of new homes sold in Toronto jumped 45% last year to 36,471 units. It was well above the 13% increase in transactions of existing homes. The increase in sales of new homes was driven by single-family units, which jumped 157% last year to 9,523.
– Statistics Canada: Q4 2019 saw a 0.6% increase in Canadian home prices. Driven by 0.9% increase for resales; partially offset a 0.2% decrease for new home prices. Both condo apartments and houses gained 0.5%. For 2019 as a whole, prices were up 1.6%, gaining from the 1.1% in 2018.
– TREB: In December, market saw 1,984 sales of detached homes, representing 24.77% annual increase. 465 transactions in City of Toronto, 36.76% higher compared to 2018. Number of new detached properties was just 1,627 listings, significantly declining by 22.15% year-over-year.
– CBRE’s “Scoring Tech Talent in North America 2019” report: Toronto saw the largest proportionate growth in technology jobs of any other North American city over the past half-decade. Saw number of tech industry employees grow by a massive 54% to a total of 228,500 professionals.
– Zoocasa analysis: Maximum withdrawal of $35,000 from RRSPs by eligible buyers represents just 3.5% of home purchases in Vancouver, and 4.3% in Toronto. As a whole, median-income Canadians will need between 4.3-6 years to save up an amount equivalent to the $35,000 from the HBP.
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: