June 28th, 2016 Mortgage Industry Update

The Bank of Canada announced on May 25th that it’s overnight lending rate will remain at 0.50%. The prime rate remains at 2.70%. Most fixed rates have also stabilized.

Additionally this week:
– Introducing a new 5 year fixed promotional low rate of 2.49%!!!

– Economists forecast Bank of Canada is likely to continue to hold interest rates steady for longer or even cut them further due to brexit

– CIBC’s Benjamin Tal: Additional taxation on overseas investors would not be sufficient in addressing the “fundamental” problem of supply

– Finance Minister Bill Morneau hinted his government will take additional steps to rein in housing prices in Toronto and Vancouver

– Tight supply of low-rise homes pushed average price in this category to record high in May – $875,174, while detached homes averaged $1.125M

– BILD President and CEO Bryan Tuckey: “Nine out of 10 of the new homes available for sale in the GTA are high-rise and mid-rise condominiums”

 
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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