September 17th, 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:
– Mortgage Professionals Canada survey: For those who already own a home, 90% are happy with their purchase. An overwhelming 76% of Canadians believe they’d be financially better off as a homeowner vs. just 8% who feel they would be better off renting.
– CMHC: Mortgage delinquency rate in Toronto for loans less than $100,000 was at 0.11% in Q1 2019, unchanged from 2018. Among those who borrowed $100k – $200k, rate was 0.10%, down 9.09% annually. Significant fall for balances between $200k – $300k, by 11.11% to end up at 0.08%.
– Bloomberg: After three straight months of stagnant levels, Canadian workforce saw addition of 81,000 new jobs last month. Increase far surpassed earlier predictions of roughly 20,000 new workers. Largest 12-month gain since 2003, keeping the unemployment rate at just 5.7%.
– Equifax and CMHC: HELOC payments are consistently outpacing every other debt type in Toronto. During Q1, average HELOC payment in Toronto went up by 14.48% annually, reaching $593 per month. Outstripped growth seen in market’s mortgage payments, which increased by just 5.4%.
– Knight Frank Global House Price Index: Canada placed 49th out of 56 national housing markets. In Q2 Canadian home prices were up only 0.5% compared to 2018. Canada ranks 6th out of the G7 nations. Three years ago Canada was in the third spot in Knight Frank’s Q2 2016 roundup.
– Of the continent’s large metropolises, the best ones to live in are all found in Canada, according to the latest edition of the Economist Intelligence Unit’s liveability index. Calgary, Vancouver, and Toronto were all within the top 10 in the global rankings.
Stay tuned for the next update!
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