February 5th, 2019 Mortgage Industry Update
The Bank of Canada announced on January 9th that it’s overnight lending rate will remain at 1.75%. The prime rate remains 3.95%. The common prediction currently stands at the Bank of Canada will very gradually increase rates in 2019.
Additionally this week:
– Canadian Real Estate Association showed that national home sales in 2018 declined by 11.1% annually. This represented the greatest shrinkage ever since the recession in 2008, immediately following a 4.64% shrinkage just the previous year.
– Angus Reid Institute survey: Debt has caused 18% of Canadians to put off buying a home. 2% of respondents say they aren’t saving for retirement because of what they owe, while 8% haven’t tied the knot and 7% are delaying having children.
– TREB: Average rent for one-bedroom condominium apartments up by 8.8% annually to $2,143 in Q4 2018 in GTA. Average two-bedroom condominium apartment rent up by 5.5% over the same period to $2,774.
– TREB: 9.9% drop in sales of condos year-over-year in Q4 2018 to 5,191. Listings down 11.2% year-over-year to 7,272 and the average price increased 8.3% to $558,728; with the City of Toronto (72% of transactions) posting a rise of 8.9% to $598,664.
– National Bank’s Housing Affordability Monitor: In Toronto, households have to save for 102 months to afford a downpayment. Average dating back to 2000 is 45 months, highlighting how ownership-housing costs have skyrocketed in recent years. Also well above national average of 58.
– Finance Minister Bill Morneau not considering any additional regulations to address the growth of private mortgage lenders after rumours arose. Asked if concerned about the rise in private lending in Canada’s mortgage market, said there are no specific measures he’s looking at.
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: