July 30th, 2019 Mortgage Industry Update
The Bank of Canada announced on July 10th 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 the remainder of 2019, with the small possibility of a rate decrease.
Additionally this week:
– Toronto has been ranked as Canada’s most attractive city to move to, according to a survey from Finder(.)com. Asked 1,200 Canadian adults to rank the cities they would consider moving to. Ten percent of respondents said they’d move to Toronto in order to be able to buy a place.
– Finder.com Poll: 54% of respondents are willing to resettle in a different Canadian city to buy a home due to affordability concerns in their local markets. 85% of Gen Z (18-24) adults are willing, 70% of millennials, while just 26% of respondents over the age of 65.
– CMHC: Last year saw the slowest year-over-year growth rate of outstanding mortgages in more than 25 years with new mortgages for the purchase of property down 19%, while refinanced mortgages by the same lender decreased by 12%, compared to 2017.
– Rentals.ca Report: Priciest average rent for a one-bedroom home is in Toronto, where landlords were asking an average of $2,266 a month in June, up 1.6% from the previous month. Average for all rental listings Canada-wide was $1,953 per month, an increase of 1.9%.
– Statistics Canada: Home owners paid $91.42B in mortgage debt payments during Q1 alone, with more than half going towards interest (growing by 13.78% year-over-year to reach $51.89B). Sum was 2.04% greater than volume seen during Q4 2018, as well as 7.30% larger on an annual basis.
– CREA: Oakville is the last $1-million plus housing market standing; only market to break the mark in June. Had a benchmark home price of $1,008,600 in June, up about 3 percent annually, according to the Canadian Real Estate Association’s 20-market index.
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: