Banking in Canada can be a murky subject – one that we hope to shed some light on with a series of highly informational articles.
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TD Bank joins RBC in hiking fixed mortgage rates
– moneysense.ca
TORONTO – TD Bank (TSX:TD) has quietly increased its fixed mortgage rates ahead of a similar move by Royal Bank of Canada (TSX:RY) to take effect Thursday, the latest sign that Canada’s big banks are hiking the costs of borrowing for homeowners.Cheryl Ficker, a spokeswoman for TD, said Wednesday that the lender raised its special rate offer for a four-year fixed mortgage by five basis points to 2.44 per cent and for a five-year fixed mortgage by 10 basis points to 2.69 per cent. The changes kicked in Tuesday and affect all amortization periods, Ficker said.
Rob McLister, a mortgage broker at IntelliMortgage and founder of RateSpy.com, said he expects the other big banks will quickly move in lockstep because of a massive sell-off in the bond market that has made it more expensive for banks to get access to cash.
.cbR{box-sizing:border-box;display:block;width:100%;margin:1em 0;border:1px solid #bbb;padding:.5em}@media (min-width:480px){.cbR{width:250px;margin:0 0 1em 1em;float:right}}Higher mortgage rates coming tomorrow and Trump’s to blame
“When bond yields shoot up 25-plus basis points like we’ve seen in the last week, the big banks move like a herd,” said McLister…
RBC Second of the Big Banks to Hike Mortgage Rates
– ratesupermarket.ca
Mortgage rates still remain low overall, but another major bank has announced a rise in mortgage rates, effective immediately. In a statement earlier this week, Royal Bank of Canada says it has raised its special offer five-year fixed mortgage rate to 2.94 per cent, and its four-year rate to 2.79 per cent – an increase of 30 basis points. Three-year fixed rates have also increased by 25 basis points to 2.69 per cent.
For amortizations greater than 25 years, the jump is even steeper. The five-year and four-year rates have risen by 40 basis points to 3.04 per cent and 2.89 per cent, respectively. The three-year fixed rate product has gone up by 35 basis points to 2.79 per cent.
Also read: TD Canada Trust hikes prime mortgage rate – what’s next?
How Will this Change My Mortgage?
To find out how much more these products will cost homebuyers, we used RateSupermarket.ca’s mortgage payment calculator to crunch some numbers. Therefore, if we take the average Canadian home price which currently stands at $481,994 and assume that a buyer puts 20 per cent down, these new rates will amount to this individual paying the following on a 25-year amortization:
Five-year fixed rate mortgage: $59 more monthly, $703…
RBC Second of the Big Banks to Hike Mortgage Rates
– ratesupermarket.ca
Mortgage rates still remain low overall, but another major bank has announced a rise in mortgage rates, effective immediately. In a statement earlier this week, Royal Bank of Canada says it has raised its special offer five-year fixed mortgage rate to 2.94 per cent, and its four-year rate to 2.79 per cent – an increase of 30 basis points. Three-year fixed rates have also increased by 25 basis points to 2.69 per cent.
For amortizations greater than 25 years, the jump is even steeper. The five-year and four-year rates have risen by 40 basis points to 3.04 per cent and 2.89 per cent, respectively. The three-year fixed rate product has gone up by 35 basis points to 2.79 per cent.
Also read: TD Canada Trust hikes prime mortgage rate – what’s next?
How Will this Change My Mortgage?
To find out how much more these products will cost homebuyers, we used RateSupermarket.ca’s mortgage payment calculator to crunch some numbers. Therefore, if we take the average Canadian home price which currently stands at $481,994 and assume that a buyer puts 20 per cent down, these new rates will amount to this individual paying the following on a 25-year amortization:
For amortizations greater than 25 years, the jump is even steeper. The five-year and four-year rates have risen by 40 basis points to 3.04 per cent and 2.89 per cent, respectively. The three-year fixed rate product has gone up by 35 basis points to 2.79 per cent.
Also read: TD Canada Trust hikes prime mortgage rate – what’s next?
How Will this Change My Mortgage?
To find out how much more these products will cost homebuyers, we used RateSupermarket.ca’s mortgage payment calculator to crunch some numbers. Therefore, if we take the average Canadian home price which currently stands at $481,994 and assume that a buyer puts 20 per cent down, these new rates will amount to this individual paying the following on a 25-year amortization:
Five-year fixed rate mortgage: $59 more monthly, $703…
