November 21st, 2017 Mortgage Industry Update

The Bank of Canada announced on October 25th that it’s overnight lending rate will remain at 1.00%. The prime rate remains the same. It is common prediction for rates to rise another 2 times by the end of 2018. Most fixed rates have risen significantly and are now in the 3%+ range.

Additionally this week:
– CREA: Number of homes sold through its MLS system in October was up 0.9% from September, third consecutive monthly increase.

– Statistics Canada: British Columbia’s real estate, rental, and leasing sector make up a higher share (18.36%) of the province’s economy, compared to oil and gas in Alberta (16.98%).

– Ryerson City Building Institute and Urbanation report: 94,000 new condo units expected in GTA over next 5 years. However, supply will leave a sizeable gap in market – only 38% of units will have 2 or more bedrooms, making them less suitable for families.

– Housing affordability across Canada continued to decline during the third quarter this year, according to a recently released report by the National Bank of Canada.

– CMHC: “New home construction remains very strong in 2017, as the seasonally adjusted number of housing starts has been above 200,000 units in nine of ten months so far this year.”

– Vancouver Mayor Gregor Robertson warning homeowners if they fail to declare their property status by Feb. 2, they will face the city’s empty homes tax (1% of assessed value) plus $250 fine. Affects any property that is not principal residence and not occupied for 6 months of year.

 
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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