October 17th, 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:
– Royal LePage: In Q3 2017, real estate in the GTA began to show signs of a recovery, “transitioning to a more balanced market”.

– Urbanation: Average index rent in third quarter 2017 for condominium apartments in the GTA jumped 10.3% from 2016 to $2.99 per square foot.

– CMHC: Decline in Canada’s housing starts in Sep, following 8 months of increases. 6 months trend slipped to 214,821 from 220,573 in August.

– CMHC: Economic factors – population, incomes, borrowing costs accounted for less than half of 40% surge in Toronto home prices b/w 2010-2016.

– Scotiabank calls for an 8% rise in mortgage carrying costs for new buyers in 2018 with an additional 4% rise in 2019.

– World’s two biggest fund managers: BoC Governor “on hold” until at least 2018 with interest rates, anticipating a more gradual approach.

 
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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