September 1st, 2020 Mortgage Industry Update

The Bank of Canada announced on July 15th that its overnight lending rate will remain at 0.25%. The prime rate remains 2.45%. The Bank of Canada has openly stated that it will more than likely keep rates at this “effective lower bound” for the immediate future until the effects of the pandemic are more clear.

Additionally this week:
– Bloomberg Nanos Canadian Confidence Index, a composite measure of financial health and economic expectations, ticked up to 52.8 last week, from 51.7 a week earlier. Is at highest since mid-March, and has made up more than four-fifths of losses during the height of the pandemic.

– City of Toronto introduced new rules for the short-term rental market. “Beginning Sept. 10, 2020, short-term rental operators will need to start registering with the City in order to operate in Toronto,”. Won’t be able to list properties if it isn’t their principal residence.

– Downtown Toronto condo rental listings in 2020’s second quarter were up 80 per cent year-over-year, according to brokerage site Zoocasa. Meanwhile leases in those areas were down 14 per cent over the same period. Prices across the city were down 9.3 per cent year-over-year.

– Canada Mortgage and Housing Corp. president and CEO Evan Siddall stated that around 14% of mortgages remain in deferral. Canada’s total balance of mortgage payment deferrals stood at over $247 billion as of the end of the second quarter, according to data from TransUnion.

– The Teranet-National Bank Composite House Price Index showed national real estate prices were up 0.3% in July from June. This is the smallest July advance in 15 years, confirming the slowing of the housing market in the wake of the COVID-19 pandemic.

– Remax Reality survey found that 32% of Canadians no longer want to live in urban centres and instead would like to relocate to the suburbs or small towns. 48% want to live closer to green spaces and the same number want to live in a community near hospitals and clinics.

 
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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