October 24th, 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:
– Federation of Rental-housing Providers of Ontario: 1,000+ planned purpose-built rental units converted to condos in wake of new rent control.
– Fitch Ratings: Overall, new mortgage rule changes will cool market, “positive development” in overvalued markets – Toronto and Vancouver.
– New CMHC stress tests show housing agency would withstand ‘severe’ and dramatic shocks to housing industry, even 31.5% crash in home prices.
– OSFI: New mortgage rule changes to come into effect on Jan 1/18. Home buyers putting over 20% down will now be subject to a “stress test”. BMO financial group chief economist: New mortgage rules by OFSI will hit home buyers looking to upgrade to new properties the hardest.
– Canada’s developers are on pace to start work on more than 215,000 new homes in 2017. Most since 2007, rebound after 4 years below 200,000.
– CREA: Number of homes sold in September edged up (2.1%) compared with August as sales picked up in about half of all local markets. National home sales in September remained lower compared to levels recorded in September 2016 by 11%.
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: