The Bank of Canada maintained its target for the overnight rate of 1.75% for the tenth consecutive time. Demand remains robust in Quebec because of their strong labour market and in Ontario and British Columbia population growth is boosting housing demand.
With no change in the overnight rate, lenders have not moved their interest rates. Its still a competitive environment for mortgage lending especially for purchases and high ratio insured mortgage business, including transfers.
With real estate in "our market," the GTA continuing to rise in property value, home ownership appears to continue to be a solid investment for home owners and investors. Lending has become slightly easier than in the past year with some new lending programs and changes internally within the underwriting processes. With that being said, the need for pre approvals and full underwriting prior to purchasing is becoming very necessary.
We are fairly bullish, at least in the short term on real estate pricing in the high density markets with strong employment and immigration and have terrific financing solutions to help these buyers and referral sources.
For our Chief Economists full article on the recent rate announcement visit: