October 13th, 2015 Mortgage Industry Update

The Bank of Canada announced on September 9th that it’s overnight lending rate will remain at 0.50%. The prime rate remains at 2.70%. Additionally, most fixed rates remain stable.

Additionally this week:
– TD Bank forecast for interest rates: Bank of Canada overnight rate expected to remain at 0.5% until 2017, then slowly rise to 3% by 2019.

– Liberals want to eliminate GST on all new rental builds in Canada while giving $125M/year to landlords renovating aging rental units.

– Jason Mercer, TREB director of Market Analysis, says they expect strong rates of price growth through the remainder of 2015 and into 2016.

– The value of building permits issued in August was down 3.7 per cent to $7.5 billion according to new figures from Statistics Canada.

– BMO survey: 16% say would not be able to afford $500 increase in their #mortgage; 27%, would need to review their budget. 47% of respondents say rising household debt has been fuelled by rising home prices. 35% of respondents have taken advantage of low rates to pay down debt, 18% to purchase larger homes than originally planned.

– TD Bank increases their 5 year fixed promotional mortgage rate to 2.72% from 2.67%. Scotiabank raises their 5 year fixed promotional mortgage rate to 2.74%, from 2.69%.

 
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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