September 19th, 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:
– Ontario Ministry of Finance: # of non-resident owners of real estate in Greater Golden Horseshoe down by 1.5% since new Housing Plan intro.

– CREA sales forecast down this year as national home sales slipped 9.9% in August compared with 2016. Ontario predicted to fall 10% in 2017.

– Ontario government to allow creation of 2,000 new affordable housing units in Toronto as part of the province’s Fair Housing Plan.

– Moody’s Analytics: Home price appreciation will slow over the next few years; annual gains of just 1.3% over the next five years.

– CMHC: Seasonally adjusted annual rate of housing starts for all areas of Canada was 223,232 units in August, up from 221,974 units in July.

– Canadian Payroll Association: 47% of Canadians would struggle if they were paid just one week late. 55% of millennials would be effected.

 
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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