January 5th, 2016 Mortgage Industry Update
The Bank of Canada announced on December 2nd that it’s overnight lending rate will remain at 0.50%. The prime rate remains at 2.70%. Additionally, almost all fixed rates have climbed and stabilized, as compared to the end of 2015.
Additionally this week:
– CMHC final 2015 housing starts report: Canadian starts down to 203,502 in Dec from 208,204 in Nov. Starts for 2015 up as compared to 2014. Toronto reported a total of 42,287 total starts in 2015; an increase of 46% over 2014’s 28,929.
– StatsCan: Value of building permits issued down 19.6% from October to $6.2B in November, falling below $7B for first time since May 2015.
– Canada added 40,000 self-employed people to the workforce in December, according to StatsCan. Unemployment numbers remain stable.
– TREB: MLS sales in the GTA of 4,945 in December took the year’s total to 101,299, a rise of 9.2 per cent over 2014. Average selling price for 2015 as a whole was $622,217 – up 9.8 per cent compared to $566,624 in 2014.
– Average national sale price expected to hit $448,700 this year, an increase of 1.4% year-over-year. 2015 was 8.4% year-over-year increase.
– Canada Pension Plan Investment Board has entered joint venture to purchase student housing properties in United States for total of US$1.4B.
– A few rate changes:
Home Trust decreases their 5 year fixed and variable promotional mortgage rates to 2.69%, and 2.30% respectively.
RBC increases their fixed terms between 2 and 5 years by 10 points, 5 year fixed is now 3.04%.
National Bank increases their 5 year fixed promotional mortgage rate to 2.99%, and variable to 2.60%.
Scotiabank increases their 5 year variable promotional mortgage rate to 2.60%, from 2.50%.
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: