February 5th, 2015 Mortgage Industry Update
The Bank of Canada announced on January 21st that it’s overnight lending rate has decreased from 1% to 0.75%. The prime lending rate at most lending institutions has dropped to 2.85%. Additionally, most fixed rates are on the decline.
Additionally this week:
– Many lending institutions continue to make several changes to their promotional fixed mortgage rates. The decline in rates are visible across most term lengths.
– HSBC Bank PLC has predicted the BoC will lower its benchmark to 0.5 in March and again in Q2 to a mere 0.25 per cent.
– TREB suggesting that land transfer tax rebate for first-time buyers should be increased along with threshold which the tax becomes payable.
– “We forecast that the BoC will cut the overnight rate by an additional 25bps at its next fixed announcement date in March.”: TD Bank
– More Canadians to buy homes due to low interest rates. Learn More›.
– The International Monetary Fund says that Canada’s housing market is up to 20 per cent overvalued. Learn More›.
– CIBC World Markets forecast predicts that BoC will make a further 0.25% cut to interest rates in March despite the current weakness of the dollar
– Statistics Canada data shows a weaker labour market in 2014 than previously thought, increased anticipation of another cut in interest rates
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: