May 9th, 2017 Mortgage Industry Update

The Bank of Canada announced on April 12th that it’s overnight lending rate will remain at 0.50%. The prime rate remains at 2.70%. Both fixed and variable rates are generally stable within the market at this point in time.

Additionally this week:
– Federation of Rental-housing Providers of Ontario survey: Recent policy changes have massively delayed development of 20k planned new units.

– TREB: Average price for a Toronto-area home rose to $920,791 in April and its price index rose 31.7%. Slightly down from March’s 33.2%. Total of 2,148 condos sold in April, up 7.7% year-over-year. 9,932 new condo units sold in the GTA in Q1 2017, up 73% year-over-year. Proportion of buyers between 2008 and April 2017 with a mailing address outside Canada was less than 1%; most of those had US address.

– Avison Young report: Calgary downtown office vacancy rate at 23.9%, overall vacancy rate at 22.5%. Highest unused office space rate in Canada.

– Fitch Ratings: Measures announced by gov’t to curb the rising house prices in GTA will have more “meaningful impact” than those in Vancouver.

– Nova Scotia announces first-time buyer down payment assistance program. Able to receive interest free loans of up to 5% of purchase price.

– Bloomberg Nanos Canada Confidence Index: 48.5% of Canadians see home prices rising in the next 6 months, the highest level since mid-2008.

 
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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