RBC Plans 20-Basis Point Fixed Mortgage Rate Increase + MORE Jun 22nd

Just like paying the taxman, insurance is one of those not-so-fun-but-necessary expenses. Whether it’s life, home, auto or mortgage insurance, most Canadians are paying for at least one type of coverage. However, learning about insurance is about as much fun as cleaning your attic, and it appears policyholders aren’t even trying; a majority of Canadians (52 per cent) can’t be bothered to ask their insurance provider about coverage they don’t understand under their insurance policy, according to a TD study.
Why Aren’t We Asking Questions?
Why are we so shy when it comes to our insurance policies? Thirty one per cent of TD respondents say they wouldn’t clarify their policy because they think it is too complicated. Another 31 per cent said it’s due to a lack of time. Twenty three per cent said they were embarrassed about their lack of knowledge, and 19 per cent simply weren’t interested enough to learn more, according to the State of Insurance Report. This is a startling revelation, as insurance is crucial in case of life-changing events such as car accidents or home fires…

Housing Market Growth To Contribute Less To Economy
Canada is indeed on track to economic capacity and recovery, according to the June edition of RBC’s Economic and Financial Outlook, as a number of domestic elements strengthened their contributions to overall GDP growth. However, the report found that our housing market will become less of an economic driver, forecasting continued decline in residential investment by 2.4 per cent this year, and 0.7 per cent in 2014.
Housing Starts Market Still In Danger
The report cites the mortgage rule changes made last July as a main factor for the slowdown, indicating that each market is still adapting to a decline in buyers, and the fallout from excessively strong pre-rule change conditions in 2012, which fueled rapid growth in the construction and housing starts industries.
Now, a shrinking pool of qualified buyers have many developers hitting the brakes on grandiose projects slated for this year and next. While the Canadian Real Estate Association adjusted their forecast earlier in the week due to higher than expected starts and sales, RBC points to continued challenges in many of Canada’s housing markets…

Rising fixed mortgage rates aren’t looking to subside anytime soon as RBC plans another hike, and Scotiabank joins with an increase of their own.
RBC announced that they will be increasing select special rates by 20 basis points this coming Monday, June 24. The rates affected are:
 four-year fixed closed: 3.29 per cent
five-year fixed closed: 3.49 per cent
seven-year fixed closed: 3.79 per cent
 RBC will also be increasing the three-year posted fixed rate to 3.75 per cent, up by 10 basis points.
Scotiabank Next Lender to Raise Rates
Scotiabank will be increasing a number of their special offer rates by 10 basis points each, effective Saturday, June 22. The rates include:
 two-year fixed closed: 2.79 per cent
four-year fixed closed: 3.09 per cent
seven-year fixed closed: 3.59 per cent
10-year fixed closed: 3.79 per cent.
 This upwards trend has persisted as of the beginning of June, when we first reported RBC was planning a rate increase. Since then, Laurentian and TD Bank have also followed suit with a rate rise…

With their mortgage almost retired, the first priority for Megan and Matt should be building up their tax-free savings accounts