Q1 2016 Mortgage and Real Estate Highlights

April 19th, 2016

Mortgages Rates Down!

In Q1 2016, bond yields dropped slightly (versus Q4 2015). As a result, mortgage rates did drop since the end of 2015. The lowest 5-year fixed rate decreased from 2.44% to 2.30% and the lowest 5-year variable rate decreased from 2.10% (Prime -.60%) to 2.00% (Prime-.70%).

Record Numbers In Q1 2016 For Toronto Real Estate!

Q1 of 2016 set records in Toronto in terms of number of sale transactions and average sale price. Total quarterly sale transactions in Toronto increased from 19,499 (Q1 2015) to 22,575 (Q1 2016). The average sale price at the end of Q1 increased by 12.1% (versus Q1 2015) to $688,181. The problem in the Toronto real estate market, which is the main reason for large growth in sale prices, is that the supply of homes for sale is extremely low compared to the demand. If the market remains a seller’s market, average sales price will continue to rise in 2016.

Our Current Mortgage Rates

1-year: 2.19%
2-year: 2.09%
3-year: 2.19%
4-year: 2.39%
5-year: 2.30%
7-year: 2.88%
10-year: 3.64%
Variable: 2.00%