November 15th, 2016 Mortgage Industry Update

The Bank of Canada announced on October 19th that it’s overnight lending rate will remain at 0.50%. The prime rate remains at 2.70%. Fixed rates are predicted to slightly rise due to the new mortgage rule changes.

Additionally this week:
– Ontario doubling the rebate on land-transfer tax for first-time homebuyers to $4,000, but increasing same tax on homes over $2 million.

– Genworth’s CEO: Homeowners could be facing mortgage insurance price increases next year by around 15 per cent to cover the additional costs.

– Vancouver empty homes tax to become a reality on January 1, 2017. The tax will be 1 per cent of a home’s value. Introduced to help renters.

– Fresh data from the Real Estate Board of Greater Vancouver revealed a massive 38.8 per cent year-over-year decline in home sales last month.

– TREB: Number of monthly sales through MLS system up by 11.5% year-over-year in October.

– RBC Economics: Home sales nationally will decline 11.5 per cent following the tightening of mortgage rules by the federal government.

 
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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