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!

For any questions and concerns please do not hesitate to call Harpreet Singh The Mortgage King at (416) 795-1919.

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