The Bank of Canada is maintaining its target for the overnight rate at 1/2 per cent. The Bank Rate is correspondingly 3/4 per cent and the deposit rate is 1/4 per cent.


The Bank of Canada on Mar 1st 2017 announced that it is maintaining its target for the overnight rate at 1/2 per cent. The Bank Rate is correspondingly 3/4 per cent and the deposit rate is 1/4 per cent.

CPI inflation rose to 2.1 per cent in January, reflecting higher energy prices due in part to carbon pricing measures introduced in two provinces. The Bank is looking through these effects, as their impact on inflation will be temporary. The Bank’s three measures of core inflation, taken together, continue to point to material excess capacity in the economy.

Overall, recent data on the global and Canadian economies have been consistent with the Bank’s projection of improving growth, as set out in the January Monetary Policy Report (MPR). In Canada, recent consumption and housing indicators suggest growth in the fourth quarter of 2016 may have been slightly stronger than expected. However, exports continue to face the ongoing competitiveness challenges described in the January MPR. The Canadian dollar and bond yields remain near levels observed at that time. While there have been recent gains in employment, subdued growth in wages and hours worked continue to reflect persistent economic slack in Canada, in contrast to the United States.


The Bank’s Governing Council remains attentive to the impact of significant uncertainties weighing on the outlook and continues to monitor risks outlined in the January MPR. In this context, Governing Council judges that the current stance of monetary policy is still appropriate and maintains the target for the overnight rate at 1/2 per cent. 

http://www.bankofcanada.ca/2017/03/fad-press-release-2017-03-01/

Mortgage Needs ?? Visit www.centumfirst.ca

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Single-family homes in GTA average above $1 million mark



Single-family homes in GTA average above $1 million mark

A new record has been set in the Greater Toronto Area with the average single-family ground-oriented home now surpassing $1 million, the Building Industry and Land Development Association says.

Figures from its official data source the Altus Group, show that the average price in January was $1,028,395 with prices up 25 per cent in just one year. A new detached house averaged $1,316,325 with a townhouse averaging $879,619.

“The GTA is facing a severe shortage of housing supply, particularly for single-family homes which sell as soon as they come to market,” said BILD President and CEO Bryan Tuckey. “When there aren’t enough homes to satisfy demand, prices increase and that is exactly what has been happening in our region over the last decade.”

The inventory of new ground-oriented homes hit a record low last month, just 1,524 available for purchase compared to 18,000 ten years’ ago.

There was also a decline in availability of new condo units with 11,529 available, a ten-year low. That pushed prices to a new record $507,511 on average for an apartment, up 13 per cent in a year.

“Today in the GTA there are less than half the overall number of new homes available to purchase than there were a decade ago,” Tuckey said. “Lack of serviced developable land, excessive red tape and frequent delays in the development approval process have all been large contributors to our housing supply crisis.”

Ref:http://m.repmag.ca/ market-update/singlefamily-homes-in-gta-average-above-1-million-221687.aspx

Looking for Real Estate or Mortgage Deals?

Visit us online or call us directly http://www.vijaygandhi.com

Mortgages:  www.centumfirst.ca

https://gtarealtyagent.wordpress.com/2017/02/24/single-family-homes-in-gta-average-above-1-million-mark/

CMHC’s current premium rates will apply for applications submitted to CMHC prior to March 17, 2017 regardless of the closing date.


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We know we’ve at CENTUM, mentioned it before but we can’t claim that “We are Looking Out for Your Best Interest™” if we don’t remind you 👇🏼

Effective March 17th, CMHC’s mortgage loan insurance premium rates will be increasing. CMHC’s current premium rates will apply for applications submitted to CMHC prior to March 17, 2017 regardless of the closing date.

This will result in an increase of approximately $5-$10 to the monthly mortgage payment for our CMHC-insured homebuyers. Here’s what the premium schedule looks like as above table.

 

img_9718-2

Vijay Gandhi, Mortgage Agent
Centum Metrocapp Wealth Solutions Inc.*, License #12147 *Independently owned & operated
http://www.centumfirst.ca | http://www.fundmax.ca
716 Gordon Baker Road, Unit 204A
Toronto, On, M2H3B4
Cell: 647-267-6338
Off: 416-289-2224
Fax: 1-888-813-9403

 

2017 has not seen a slowdown for home sales in the Greater Toronto Area, in fact sales were up 11.8 per cent compared to 2015


The start of 2017 has not seen a slowdown for home sales in the Greater Toronto Area, in fact sales were up 11.8 per cent compared to the start of 2015.

January sales through the MLS system of Toronto Real Estate Board totalled 5,188 while new listings were around half of their January 2015 level, highlighting the continuing concerns over supply.

“The number of active listings on TREB’s MLS® System at the end of January was essentially half of what was reported as available at the same time last year. That statistic, on its own, tells us that there is a serious supply problem in the GTA – a problem that will continue to play itself out in 2017. The result will be very strong price growth for all home types again this year,” said Jason Mercer, TREB’s Director of Market Analysis.

The benchmark price of homes in the GTA surged 21.8 per cent while the average selling price increased 22.3 per cent to $770,745.

http://m.repmag.ca/ market-update/toronto-home-sales-keep-on-rising-220782.aspx

 Buying ,Selling or Investing in Real Estate in Canada? I can help you..

I work Toronto/ GTA and Ontario for all aspects of Real Estate including Residential, Commercial & Investments. I am investor friendly and can help you find that off market diamond in the rough. 
If your customer needs to relocate, let me give them a tour of Toronto / GTA’s diverse real estate investment opportunities.
Let’s Work in your Best Interest.

Vijay Gandhi

Real Estate in Ontario, Canada!! 
Buying or Selling #Home, #Condo, #Business ?

Visit us online or Ask us or Refer us for our service, we will be glad to work for you for real estate or mortgage related services 

You can Search All Real Estate #Listing in Toronto/GTA And SURROUNDING AREAS

SHOP ONLINE with PHOTOS.

Beautiful houses starting around at $400K, see them all here…

@ www.gtarealtyagent.com

Search Your #Home or Refer Us, We love #Referrals.. 

Vijay Gandhi,

Sales Representative- REALTOR®,

Homelife / Miracle Realty Ltd., Brokerage* 

Direct line: +1-647-267-6338

Off: 416-289-3000

Also please remember to refer us in Real Estate & #Mortgage Needs@

www.vijaygandhi.com

#homelifemiracle #vijaygandhi #treb #gtarealtyagent #centumfirst #gtarealtors #homelife #houseforsale #torontorealestate

“Oh, by the way, I am never too busy for any of your referrals…”

https://gtarealtyagent.wordpress.com/2017/02/06/2017-has-not-seen-a-slowdown-for-home-sales-in-the-greater-toronto-area-in-fact-sales-were-up-11-8-per-cent-compared-to-2015/

Fed announces interest rate decision- held interest rates steady today as they assess where the economy is headed.


Fed announces interest rate decision,Federal Reserve held interest rates steady today as they assess where the economy is headed


Feb 01, 2017

As expected, the Federal Reserve held interest rates steady today as they assess where the economy is headed – and the agency intimated that rates might stay low for a good while to come.

Most experts felt the Fed’s policymaking committee would decline to raise rates today as the agency feels out the likely economic effects of the new administration.

“I don’t look for the Fed to do anything this week,” Sung Won Sohn, an economics professor at California State University, told the Associated Press. “They are starting to get their ducks in a row for further hikes, but it will be too soon to pull the trigger.”

Most other experts agreed that the Fed would take a wait-and-see stance. Consumer and business sentiment jumped after the election of President Donald Trump, but most experts felt the central bank would bide its time to make sure that rising confidence is matched with actions like stronger investment spending, hikes in compensation and continued hiring, according to a Bloomberg report.

The Fed’s decision today confirmed those expectations.

“In view of realized and expected labor market conditions and inflation, the Committee decided to maintain the target range for the federal funds rate at 1/2 to 3/4 percent,” the Federal Open Market Committee said in a statement. “The stance of monetary policy remains accommodative, thereby supporting some further strengthening in labor market conditions and a return to 2 percent inflation.”

The FOMC also said that it expects economic conditions to evolve in a way that will warrant “only gradual increases” to the federal funds rate in the immediate future. The rate, the committee said, “is likely to remain, for some time, below levels that are expected to prevail in the longer run.”

http://m.repmag.ca/news/fed-announces-interest-rate-decision-220595.aspx


Vijay Gandhi, Mortgage Agent   

Centum Metrocapp Wealth Solutions Inc.*, License #12147 *Independently owned & operated

http://www.centumfirst.ca | http://www.fundmax.ca

716 Gordon Baker Road, Unit 204A, Toronto, On, M2H3B4

Cell: 647-267-6338  Off: 416-289-2224

Fax: 1-888-813-9403

https://gtarealtyagent.wordpress.com/2017/02/01/fed-announces-interest-rate-decision-held-interest-rates-steady-today-as-they-assess-where-the-economy-is-headed/

Reverse mortgage sales soar


Reverse mortgage sales soar for HomEquity


HomEquity Bank has reported a 26 per cent rise in reverse mortgage sales with a total of $459 million in 2016.

The figures reflect a sharp rise in the firm’s mortgage broker business which increased 48 per cent year-over-year following the launch of its Mortgage Broker Direct service in September 2015.

“We are very proud of the growth we’ve attained in 2016,” said Steven Ranson, president and CEO, at HomEquity Bank. “At a time of remarkable appreciation in real estate values, we are privileged to help Canadian seniors access that equity. We look forward to continuing our track record of year over year growth for 2017.”
As well as its broker relationships, HomEquity has bolstered its referral partner relationships which includes several large chartered banks.

Vijay Gandhi, Mortgage Agent   

Centum Metrocapp Wealth Solutions Inc.*, License #12147 *Independently owned & operated

http://www.centumfirst.ca | http://www.fundmax.ca

716 Gordon Baker Road, Unit 204A, Toronto, On, M2H3B4

Cell: 647-267-6338   Off: 416-289-2224

Fax: 1-888-813-9403

Planning to Buy Real Estate this Year?


If you, or someone you know, are planning to buy a home this year and have less than 20% down payment, you may want to do so prior to March 17th. The Mortgage Insurance suppliers have announced their rates are going up because of recent government changes introduced Jan 1st that effectively increase the cost of offering the insurance product.

So take advantage of what typically is a slower real estate market in the winter months and save yourself some money.

What does this mean for you or your clients?

On a $400,000 mortgage, it will cost $1600 more if you need Mortgage Insurance (most mortgages over 80% loan to value)

img_9889

*Premiums in Manitoba, Ontario and Quebec are subject to provincial sales tax – the sales tax cannot be added to the loan amount. Based on a 5 year term @ 2.94% and 25 year amortization

As the table shows, the monthly payment increase might not seem large, but over the life of your mortgage, it will cost you thousands!

Call today to find out what options you have and what programs are available for you..

Visit us: http://www.centumfirst.ca | 647-267-6338

Bank of Canada holds interest rate, begins to bake some Trump risks into outlook.


Bank of Canada announces rate

Bank of Canada maintains overnight rate target at 1/2 per cent


Bank of Canada holds interest rate, begins to bake some Trump risks into outlook.

The Bank of Canada is holding its benchmark interest rate at 0.5 per cent and providing a deeper assessment of the risks associated with the big economic unknowns of a Trump presidency.

The central bank is keeping its key interest rate in place with the Canadian economy showing signs of improvement _ but it also warns of the significant uncertainty tied to potential policy changes by the United States, its largest trading partner.

This is the bank’s first release of its updated forecasts and broad economic assessment since Donald Trump won the U.S. presidential election in November. Trump is to be inaugurated as President on Friday.

For now, however, the bank is offering an optimistic outlook by largely sticking with the growth expectations that it released in October, by predicting the economy to expand by 2.1 per cent in 2017 and 2018.

It says its base-case outlook only factors in the impact of the expected U.S. fiscal boost, which would help Canada through increased demand, and the effects of Trump’s vow to cut corporate taxes, which it notes would hurt Canadian competitiveness.

The bank did not account for the full range of Trump’s promised policy changes _ including his protectionist pledge that it says would have material consequences for Canadian investment and exports.

Bank of Canada maintains overnight rate target at 1/2 per cent

http://www.bankofcanada.ca/2017/01/fad-press-release-2017-01-18/

Available as: PDF http://www.bankofcanada.ca/wp-content/uploads/2017/01/fad-press-release-2017-01-18.pdf

https://gtarealtyagent.wordpress.com/2017/01/18/bank-of-canada-holds-interest-rate-begins-to-bake-some-trump-risks-into-outlook/

CMHC announced early Today Mortgage/Loan insurance premiums hiked once again effective March 17,2017.


Mortgage insurance premiums hiked once again

CMHC announced early Tuesday it is increasing its loan insurance premiums effective March 17.

https://www.cmhc-schl.gc.ca/en/corp/nero/nere/2017/2017-01-17-0830.cfm

“We do not expect the higher premiums to have a significant impact on the ability of Canadians to buy a home,” said Steven Mennill, Senior Vice-President, Insurance. “Overall, the changes will preserve competition in the mortgage loan insurance industry and contribute to financial stability.”

According to the Crown Corporation, the average homebuyer will see a $5 increase to their monthly mortgage payment as a result. That $5 certainly adds up, however, to a total of $1,500 over the course of a 25 year mortgage.

The increase is the result of last year’s mortgage rule changes, CMHC claims.

“Capital requirements are an important factor in determining mortgage insurance premiums. The changes reflect OSFI’s new capital requirements that came into effect on January 1st of this year that require mortgage insurers to hold additional capital,” it said in a release.

“Capital holdings create a buffer against potential losses, helping to ensure the long term stability of the financial system.”



This latest hike comes less than two years after the most previous one, which was announced in April 2015.

See below for standard premium changes.


Source:http://m.repmag.ca/news/ mortgage-insurance-premiums-hiked-once-again-219706.aspx

https://gtarealtyagent.wordpress.com/2017/01/17/cmhc-announced-early-today-mortgageloan-insurance-premiums-hiked-once-again-effective-march-172017/

Finance Minister rules out more housing measures for now



Canada’s Finance Minister  Mr.Morneau rules out more housing measures for nowOttawa will continue to monitor the housing market but is not planning to introduce any further measures for now. That was the message from federal finance minister Bill Morneau when he met with private sector economists Friday and later spoke to journalists.

CBC News reports that the minister said the government is keeping an eye on risks to the market in order to “ensure the housing market is stable and that people are protected in their important investment.”
Mr Morneau also said that the government was keen to ensure that the relationship between Canada and the new US president would be of benefit to trade but said that formal discussions have not yet taken place with president-elect Trump.