June 6th, 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:
– TREB: GTA home sales plunged last month by 20.3%. Average selling price for all properties in May was $863,910, up 14.9% from last year.

– REBGV: Home sales across the region returned to near record levels in May; totalled 4,364 in May, a leap of 22.8% over 3,553 in April.

– IMF: Co-ordination b/w federal + provincial regulators as well as government efforts to collect more data on real estate transactions needed. IMF doesn’t agree with foreign-buyers’ tax. Instead policy should tackle property speculators rather than discriminate against non-residents.

– Canadian Bankers Association CEO: Policy-makers should take time to analyze effects of new rules before introducing further measures.

– CMHC: Number of new mortgages insured fell sharply in Q1 2017 as new lending restrictions made an impact. Down 41% from 83,000 to 48,746.

– BMO Capital Markets: “Low interest rates are going to be oxygen that keeps the fire going in the Toronto and BC housing markets”.

 
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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