November 3rd, 2020 Mortgage Industry Update
The Bank of Canada announced on October 28th that its overnight lending rate will remain at 0.25%. The prime rate remains 2.45%. The Bank of Canada suggests that they will more than likely keep rates at this “effective lower bound” until 2023, as they observe the full effects of the pandemic.
Additionally this week:
– TRREB: Toronto condo rentals are up 30.2% in Q3 from 2019. There were 14,036 leases, up from 10,781 in 2019. Total of 34,971 condos listed, up a whopping 114% over the 16,348 listings during 2019. The growth in supply applied slight downward pressure on the average rental prices.
– Royal LePage House Price Survey: Price of an average home in the GTA increased by 11% in Q3 from 2019 to $922,421. Two-story homes increased 12.2% to $1,082,502. Bungalows jumped 10.6% to $887,156. Condominiums were up 6.8% to $599,826. In Toronto prices up 11.1% to $975,980.
– Urbanation: Condo vacancy in GTA went up to 2.4% in Q3, rental listings now have average sales time of 26 days (versus 14 days a year ago). Number of condos listed for rent in GTA doubled to 23,388 units, while there was an average annual monthly rent reduction of 9.4% to $2,249.
– Bank of Canada stands still on the overnight rate at 0.25%. Good news for variable rate mortgage holders as there is no expected change in prime rates!
– Teranet-National Bank House Price Index: September was a hot month for real estate in Canada, as home prices from coast to coast increased to the second-highest level for the month in 22 years. Rose 1.1% from the previous month.
– Office of the Superintendent of Financial Institutions: Canada’s balance of loans secured by home equity saw a miniscule 0.58% annual increase in August, which was the lowest year-over-year upswing since 2016. Balance stood at $305.17 B in August, just 0.04% higher from July.
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: