May 24th, 2016 Mortgage Industry Update

The Bank of Canada announced on April 13th 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:
– York Region awarded as one of Ontario’s highest appreciating regions in past year: April 2015 avg price: $772,287/April 2016: $939,299. Up 21.6%.

– CMHC: Average Canadian home price expected to continue to increase in the next two years. Doesn’t expect any sort of wide-scale correction.

– Royal LePage Survey: Advisors in Canada’s metropolitan areas believe that 25% of luxury properties have been purchased by foreigners.

– Benjamin Tal of the CIBC: Flipping tax would take care of “most problematic element of foreign investment in Canadian real estate.”

– The Canada Mortgage and Housing Corporation says that it will suffer limited impact from the devastating losses in the Fort McMurray area.

– A few rate changes:
First National decreases their 5 year fixed promotional mortgage rate to 2.59%, variable to 2.35%.

 
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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