May 31st, 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:
– Bank of Canada maintaining its target for the overnight rate at 1/2 per cent. Prime rate to remain the same!

– BMO: 44% of consumers in the 18-35 age bracket are forced to depend on parents or other earning family members for their home purchases.

– Generation Squeeze report: Buying an average Toronto home will mean 15 years of saving for a downpayment.

– Average mortgage debt in Canada increased to $181,000 from $175,000 since last fall, according to a recently released Manulife Bank study.

– Globe and Mail report University of BC lost 18 hires to other universities because of the cost of housing; not affordable for new hires.

– 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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