January 23rd, 2018 Mortgage Industry Update

The Bank of Canada announced on January 17th that it’s overnight lending rate will increase to 1.25% from 1.00%. The prime rate has thus increased to 3.45% with most lenders. The 5 year posted rate has also changed to 5.14% with most lenders.

Additionally this week:
– Bank of Canada increases overnight rate target to 1.25%, from 1%. The Bank Rate is correspondingly 1.5% and the deposit rate is 1%. The prime rate increases to 3.45% from 3.20%.

– Condos.ca study: Condo fees in Toronto rose only 2.5% last year over 2016. The average maintenance cost on a 594 sq. ft., one-bedroom apartment was $386.60. That compares to an annual increase in both 2016 and 2015 of about 4%.

– Ipsos Survey for MNP: 50% of the Canadian respondents said that they are more concerned about their ability to repay debts, representing a 3-point increase since September.

– The premier of British Columbia has rejected calls for a ban on foreign buyers of real estate in the province. John Horgan has reacted to the Green Party’s leader Andrew Weaver who has been calling for a ban similar to that implemented in New Zealand.

– CREA: There was a 4.5% increase in nationwide home sales in December compared with November, marking fifth consecutive monthly rise. Average selling price of a home sold in December rose to $496,500.

– Urbanation: The Toronto vacancy rate in Q4 2017 was among the lowest ever, at 0.3%. The average monthly rent for a condominium rose by 9.1% to $2,166 from a year earlier.

 
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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