October 3rd, 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:
– Bank of Canada Governor Stephen Poloz: “There is no predetermined path for interest rates from here”.

– RE/MAX Ontario-Atlantic Canada: Sales of condos priced $1M+ increased in the GTA in the first seven months of 2017 by 85% year-over-year.

– TREB urging city to exercise caution regarding possible vacant home tax. Saying take measured approach to avoid any unintended consequences.

– BILD: 31,749 homes sold in GTA in 8 months to the end of August. 28% above 10-year average for the period and above the same time for 2016.

– Capital Economics economist: Household debt in Canada is “outlandish when compared to the rest of the G7”. Debt-to-income ratio is 175%.

– Bank of Canada: Canadian consumer credit growth increasing by 4.4% year-over-year, reaching record high of $590 billion at end of July 2017.

 
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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