The House: April 22, 2024

Your bi-weekly dose of Canadian mortgage news

April 22, 2024

Welcome to The House, your bi-weekly dose of Canadian mortgage news. We dive into industry news, updates, and more for professionals in the Mortgage industry. There has been many significant updates the past two weeks, buckle-up!

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What’s Happening:

  • Bank of Canada maintains overnight interest rate at 5% in their April 10, announcement.  The industry will anticipate good news on rate cuts at the next announcement on June 5.

  • Canada’s inflation rate rose to 2.9% in March, primarily impacted by rising gas prices.  This is a slight increase from 2.8% in February.  Positively, many economists stated a June rate cut is a strong possibility but no guarantee.

  • Housing affordability measures were announced ahead of Budget 2024 including measures such as:

    • An increase in the amount first-time homebuyers can withdraw from their RRSPs to make a down payment, from $35,000 to $60,000.  Effective April 16, 2024.

    • 30-year amortization periods will be allowed on insured mortgages for first-time homebuyers purchasing newly built homes.  Effective August 1, 2024.

  • Capital Gains tax changes met with friction from the Canadian business community, especially within the tech ecosystem.

  • The federal government commits to exploiting CRA income verification in an attempt to address rising mortgage fraud.

  • Halal mortgages being considered as part of budget 2024 measures to increase home affordability.

  • Wealthsimple considers entering the mortgage space.

Mortgage Rates  - Banks

  •  5-year fixed  - 5.14%

  • 4-year fixed  - 5.29%

  • 3-year fixed  - 5.55%

  • 5-year fixed (High-Ratio) - 4.84%

  • 4-year fixed (High-Ratio) - 5.59%

  • 3-year fixed (High-Ratio) - 6.99%

Mortgage Rates - Digital & Monoline Lenders

  • 5-year fixed - 4.99%

  • 4-year fixed - 5.04%

  • 3-year fixed - 5.19%

  • 5-year fixed (High-Ratio) - 4.64%

  • 4-year fixed (High-Ratio) - 4.89%

  • 3-year fixed (High-Ratio)  - 4.84%

Compare current rates here.

Market Updates & Trends:

  • Prime rate sitting at 7.2%

  • Fixed mortgage rates have been on the rise the past two weeks.

  • OSFI announces a new stress test for uninsured mortgages.

  • Home prices are expected to climb by 4.9% in 2024.  This is a revised forecast from 2.3% impacted by the number of home sales in March and the average price of homes sold increasing.

  • Entry into the housing market is stated to feel inaccessible by 76% of non-owners in a report from CIBC.  Many feel priced out as well as face difficulties saving for a down payment.

  • High mortgage payments from over even with the prospect of a June interest rate cut. 

  • U.S. inflation still poses risk to the Canadian mortgage market.

  • What does the merger between Home Trust and Fairstone bank mean for consumers and brokers?

Events

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