June 20th, 2017 Mortgage Industry Update
The Bank of Canada announced on May 24th that it’s overnight lending rate will remain at 0.50%. The prime rate remains at 2.70%. Both fixed and variable rates are generally stable within the market at this point in time.
Additionally this week:
– StatsCan: Amount of household debt as a proportion of household disposable income slipped to 166.9% in Q1 2017, compared with 167.2% in 2016.
– CREA: Nationally, home sales fell 6.2% in May, which marked the largest month-to-month decline in nearly five years.
– Chief economist of CREA says homeowners in the Greater Toronto Area should brace themselves for a possible tax on speculative home purchases.
– CMHC: Mortgage market remained stable in Q1 2017. Despite concerns about household debt, there is little sign of mortgage stress. Avg scheduled monthly mortgage payment for new loans up to $1,328 in Q4 2016, up 4.6% from $1,269 in 2015. Avg Toronto monthly mortgage payment was $1,826 during the fourth quarter of last year, up 11.5 per cent from $1,638 a year prior. Mortgage delinquency rates during the fourth quarter of 2016 were 0.34 per cent nationwide compared with 0.35 per cent a year earlier.
– Equifax study: Millenials (85%) are confident and optimistic in their financial future and in the housing market. 87% want to buy a home.
– CMHC: Toronto housing starts down in May. “Largely as a result of decrease in single-detached + row units”. First month down since Sep 2016.
Stay tuned for the next update!
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