October 10th, 2017 Mortgage Industry Update

The Bank of Canada announced on September 6th that it’s overnight lending rate will increase from 0.75% to 1.00%. The prime rate at almost all institutions has increased from 2.95% to 3.20%, the second consecutive increase in 2017. Most fixed rates remain stable.

Additionally this week:
– Ontario liberal government announces fines for unethical realtors doubled to $50,000, brokerages to $100,000 per violation.

– TREB: GTA sales of all major types of residential property down 35% year-over-year in September, average price up 2.6% to $775,546. Average Toronto area re-sale home price rose by about $43,000 or 6% in September compared with August (to $775,546 from $732,292).

– CMHC announces that it may level the playing field for self-employed borrowers and new to the country borrowers, providing amended rules.

– RBC: You’d have to go back to 1990 to find a time less affordable than now for Canadian homebuyers. Affordability measure 46.7% in Q2 2017.

– Housing Delivery Group formed to fulfill Fair Housing Plan measure to cut through red tape, impediments to timely construction developments.

– UBS Group: Toronto among global cities most at risk of housing bubble as economic optimism and low borrowing costs continue to push up values.

 
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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