October 1st, 2019 Mortgage Industry Update
The Bank of Canada announced on September 4th that it’s overnight lending rate will remain at 1.75%. The prime rate remains 3.95%. The common prediction currently stands that the Bank of Canada will likely keep rates consistent for the remainder of 2019, with the small possibility of a rate decrease.
Additionally this week:
– Conservative leader Andrew Scheer has vowed to remove the stress test from mortgage renewals, and to reinstitute 30 year amortizations for first time home buyers to help make monthly payments more manageable + increase affordability.
– Price of a typical condo apartment edged to a new high last month. TREB reported the benchmark price of a condo hit $545,900 in August, up 7.97% from 2018. The City of Toronto benchmark reached $576,300, up 8.01% from last year. Both numbers are at a new all-time high.
– Foreign investment in Canadian commercial real estate dropped 70% in the first half of the year amid a scarcity of large portfolios for sale, data from Altus Group Ltd. show. Transactions totalled $1.5 billion, down from $5 billion in the first six months of 2018.
– Canadian Rental Housing Index: More than 30% of renters in Willowdale, Thornhill, Richmond Hill and Markham are spending more than 50% of their income on rent. More than 55% of renters are spending 30% or more on rent.
– Environics Analytics: The net worth of the average Canadian household fell for the first time in almost a decade as growing debts, shrinking pensions and declining liquid assets took their toll. The average Canadian net worth dropped by $7,594 or 1.1% to $678,792 last year.
– BILD: Buyers of new single-family homes in GTA pay on average $222,000 in fees with condo buyers paying $124,000; some of the highest government charges in North America. Homes 3x higher than in major US metros, double than other Canadian urban areas. Condos 1.5x, and 30% higher.
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: