June 4th, 2019 Mortgage Industry Update

The Bank of Canada announced on May 29th 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.

Additionally this week:
– Organisation for Economic Co-operation and Development: Canada’s house price to income ratio is the highest in the world – by a large margin. Tops the list of high-income, advanced economies. The index reached 122.9 in Q4 2018, up 2% from the year before.

– RBC survey: Buying a home with a partner or spouse has been steadily declining (42% vs 49% in 2017). Purchasing a home alone up (32% vs 29% in 2017). 47% plan to put more than 15% down (up 10% from 2018). 16% say they will put down only 5% of the purchase price.

– Urbanation: A new condo in Toronto cost an average of $779 per square foot in the first quarter of this year, having surged some 50 per cent since 2016. Meanwhile, a resale condo cost $683 per square foot, making new condos 14 per cent more expensive.

– Altus Group Housing Report: Overall condo apartment sales clocked in at little over 48,500 units last year, massive 21% decline from nearly 62,000 transactions in 2017. GTA’s condo sector accounted for significant portion of losses, falling 38% annually to approximately 21,400.

– Bank of Canada Governor Stephen Poloz said he sees the slowdown in Canada’s economy as temporary and that interest rates will likely go up – he just doesn’t know when and by how much.

– Ontario Ministry of Finance: Between February 17th 2018 and the end of this March the Non-Resident Speculation Tax raised close to $221 million, on 1,788 properties in the Greater Golden Horseshoe Area. Total value of properties purchased was approximately $1.47 billion.

 
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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