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September 19th, 2014 Mortgage Industry Update

Interest rates slightly increased with a few major lenders. The majority of rates remained stable for September thus far, and it is likely they will continue as such.

Additionally this week:
– CIBC’s top economist says Toronto and Vancouver’s red-hot housing markets aren’t as ‘insane’ as they look. [fancy_link link_text=”Learn More” url=”http://business.financialpost.com/2014/09/17/toronto-vancouver-housing-canada-insane/?utm_content=buffere587d&utm_medium=social&utm_source=facebook.com&utm_campaign=buffer” float=”none”].

– The Huffington Post released an interesting article on Canada’s “housing bubble” in select cities. [fancy_link link_text=”Learn More” url=”http://www.huffingtonpost.ca/2014/09/16/housing-market-canada_n_5830892.html?utm_content=buffere0b1f&utm_medium=social&utm_source=facebook.com&utm_campaign=buffer” float=”none”].

– Mortgage amounts are increasing more than household incomes. Some are calling for CMHC to take action on minimum downpayment from 5% to 10%. [fancy_link link_text=”Learn More” url=”http://www.whichmortgage.ca/article/you-can-get-a-big-mortgage-but-should-you-182039.aspx” float=”none”].

– This week’s interest rate changes with major lenders: 4 year promotional interest rate to 2.89% (before: 2.77%), 5 year: 3.04% (before: 2.99%), 2 year: 2.59% (before: 2.34%), 4 year: 2.89% (before: 2.77%).

– CREA raises home sales forecast. Sales: 475,000 homes for 2014, up from the June prediction of 463,400. [fancy_link link_text=”Learn More” url=”https://ca.finance.yahoo.com/news/canadian-real-estate-association-raises-home-sales-forecast-133051891.html” float=”none”].

– Brampton remains top selling city for new low-rise homes. [fancy_link link_text=”Learn More” url=”http://blog.newinhomes.com/news/brampton-still-top-selling-city-new-low-rise/” float=”none”].

– BMO questions the longevity of increases in house prices without any growth in income. [fancy_link link_text=”Learn More” url=”http://www.whichmortgage.ca/article/bank-questions-longevity-of-house-price-rises-181961.aspx” float=”none”] and [fancy_link link_text=”Learn Even More” url=”http://globalnews.ca/news/1560029/boom-home-prices-are-rising-faster-than-the-debt-owed-on-them/?utm_content=buffer2d30d&utm_medium=social&utm_source=facebook.com&utm_campaign=buffer” float=”none”]

 
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.