June 7th, 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 slightly declined and become stable.
Additionally this week:
– TREB: Number of new listings in April dropped by nearly 10% on a year-over-year basis. 12,870 homes sold in May, 11% higher than last year.
– National Bank CEO: Canadian mortgage down payments should return “over time” to 10% from 5% for all homes to help cool soaring prices.
– Scotiabank CEO: “We just took our foot off the gas the last couple quarters in terms of mortgage growth… in terms of Vancouver and Toronto.”
– CMHC: Mortgage rates are expected to rise moderately from current levels in the first half of 2017. Sales are expected to slow as well.
– Royal Bank of Canada says that the probability of a nationwide downturn in the condo housing market is low.
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.Share this post on: Connect with us on: