‘The Bank of Canada today lowered its target for the overnight rate by 50 basis points to ¼ percent. The Bank Rate is correspondingly ½ percent and the deposit rate is ¼ percent.’ – Bank Of Canada
Month: March 2020
‘Effective March 23, 2020, the Bank of Canada 5-year Benchmark Qualifying Rate is reduced from 5.19% to 5.04%.’
What does that mean?
If you were purchasing a home for $700,000 using a $175,000 down payment and the annual household income was $126,000, you can now purchase a home for $708,690 using the same amount of down payment.
Some lenders are allowing you to deref your mortgage payment for upto six months.
Some lenders have reduced their prime rate from 3.45% to 2.95%
For example if your variable rate mortgage was at prime minus 0.80% then the rate lowers from 2.65% to 2.15%
For a $300,000 mortgage at 30 years amortization the monthly payment changes from $1,206.60 to $1,130.04 = $76.56 savings
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For mortgages insured by Canada Mortgage and Housing Corporation (CMHC), CMHC provides mortgage professionals with tools and the flexibility to make timely decisions when working with you to find a solution to your unique financial situation.
These tools include:
Converting a variable interest rate mortgage to a fixed interest rate mortgage in order to protect you from a sudden interest rate increase, should one occur.
Offering a temporary short-term payment deferral. Your mortgage professional may be prepared to offer greater payment flexibilities, particularly if previous lump sum prepayments have been made, or if you have previously chosen an accelerated payment schedule.
Extending the original repayment period (amortization) in order to lower your monthly mortgage payments.
Adding any missed payments (arrears) to the mortgage balance and spreading them over the remaining mortgage repayment period.
Offering a special payment arrangement unique to your particular financial situation.
CMHC is also willing to consider other alternatives proposed by the mortgage professional to resolve or avoid mortgage payment default. In every case, the options available will depend upon your individual financial circumstances.
Summary of TREB MLS® Sales for the GTA and Average Price February 1 to 29, 2020
Average Price $910,290
New Listings 10,613
Summary of TREB MLS® Sales for the GTA and Average Price January 1 to 31, 2020
Average Price $839,363
New Listings 7,836
Summary of TREB MLS® Sales for the GTA and Average Price December 1 to 31, 2019
Average Price $837,788
New Listings 3,531
Summary of TREB MLS® Sales for the GTA and Average Price November 1 to 30, 2019
Average Price $843,637
New Listings 8,650
Summary of TREB MLS® Sales for the GTA and Average Price October 1 to 31, 2019
Average Price $852,142
New Listings 13,050