October 18th, 2016 Mortgage Industry Update

The Bank of Canada announced on September 7th that it’s overnight lending rate will remain at 0.50%. The prime rate remains at 2.70%. Almost all fixed rates remain stable at this point despite new recent mortgage rule changes.

Additionally this week:
– CREA: Federal government’s recent changes to mortgage lending rules have injected uncertainty into the Canadian real estate market.

– CREA: Number of home sales edged higher (0.8%) in September compared with August, ending a streak of month-over-month decreases.

– Angus Reid Toronto poll: Implementing a 15% tax, similar to Vancouver’s, would have the support of 77% of respondents with 40% “strongly” supporting

– Royal LePage report: Canada’s real estate market grew during Q3; avg home price increased 12% to $545,414. Comprised of data in 53 markets.

– HuffPost: Young professionals, starting families to face greater challenges purchasing homes. New rules = lose 20% of purchasing power.

– Statistics Canada data: 9.6% rise in value of residential building permits issued in August, compared with July, with total value of $4.5B.

 
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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