June 23rd, 2015 Mortgage Industry Update

The Bank of Canada announced on May 27th that it’s overnight lending rate will remain at 0.75%. The prime lending rate at most lending institutions thus remains at 2.85%. Additionally, most fixed rates have stabilized due to the bond market.

Additionally this week:
– CMHC: Repeat buyers who use mortgage brokers up from 32 per cent in 2012 to 42 per cent in 2015.

– If the analysts are correct Canada is heading for a new construction boom; in homes for seniors. Vacancy rate falling from 8.7% to 8.1%.

– CMHC reports housing starts jumped 10% in May/April, for an annualized rate of about 202,000 units, driven largely by urban construction.

– Overall, sales were up more than 60 per cent in the Canadian market, led by growth in the GTA, Calgary, Edmonton, Ottawa and Montreal.

– Two-storey single-family homes continued to post the biggest y/y price gains at 7.18% while one-storey homes at 4.11% and townhomes at 4.09%

 
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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