Market Update - April 2019
The most recent Canadian job report was posted on Apr 5th
and shows an unexpected loss of 7,200 jobs in March. This is
in contrast to the strong job gains over the past six months.
Most experts now predict Bank of Canada (BoC) will not raise
its rate before July. This is one of the factors that has caused
mortgage lenders to drop their fixed mortgage rates frequently
in the past few weeks. It is certainly good news for home
buyers and borrowers who need to renew and/or restructure
their mortgages in the next few months.
The Canadian government announced their 2019 Federal
Budget in March. One item of interest was the introduction of a
shared equity mortgage plan which allows Canada Mortgage
and Housing Corporation (CMHC) to lend First Time Home
Buyers (FTHBs) up to 10% of the purchase price of their first
home on an interest free basis to help increase their down
payment on the purchase and lower down their monthly
payment. The Budget also proposes to increase the First Time
Home Buyer’s RRSP withdrawal limit from $25K to $35K.
It will be interesting to see what kind of affect the lower rates
and first time buyer incentive’s will have on the future housing
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