September 20th, 2016 Mortgage Industry Update
The Bank of Canada announced on September 7th that it’s overnight lending rate will remain at 0.50%. The prime rate remains at 2.70%. Almost all fixed rates remain stable ahead of the autumn season.
Additionally this week:
– Manulife survey: Just 25% of those who rent plan to become home owners in the next 12 months, despite 80% saying it’s their primary goal.
– CREA: Overall Canadian home sales fell for the 4th straight month (August) and, at 3.1%, it was the largest drop since December 2014. However, up 10.2% year-over-year. Greater Toronto Area: 22.7% increase in sales and the average price ($710,410) increasing 17.9% year-over-year.
– TransUnion study: Up to 1M borrowers may not be able to accommodate the increase in their monthly payments if interests rates rose by 1%.
– Vancouver Mayor proposing to tax homeowners by as much as 2% of assessed value for units that they declare as vacant; aim to place in 2017.
– Knight Frank (UK real estate firm): Rise in Canadian home prices (10%) only surpassed by two countries; Turkey (13.9%), New Zealand (11.2%).
– Mercer Canada survey: Average Canadian salary will increase just 2.3% in 2017; smallest increase in the 20 year history of the survey.
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.Share this post on: Connect with us on: