As the mortgage rates became all time low in the last two years, a lot of home buyers were obtaining their mortgages at a variable rate, while waiting for the best time to fix their mortgage rate at the right time. On March 29, 2010 mortgage report states that three major Canadian banks (Toronto Dominion, Royal bank, and Laurentian Bank) are increasing their rates on some mortgages, due to fluctuations in funding.
“The biggest increase announced Monday affects five-year mortgages. All three banks are hiking their posted rate by six-tenths of a per cent to 5.85 per cent from 5.25 per cent. A homeowner taking on a mortgage of $250,000 at the new posted rate of 5.85 per cent over a 25-year amortization period would pay $1,577 per month. Prior to Tuesday’s hike, that mortgage would have cost $1489 a month, or $88 less.”
The Central Bank was previously expected to increase its rates in July, but it seems that it might becoming sooner than that. The increase in the prime rate is predicted to be around 0.75 – 1%. Economists’ recommended strategy is as follows:
“Potential homebuyers should get their pre-approval applications in fast and expect delays in pre-approvals due to increased application volumes, he said. And homeowners’ with mortgages up for renewal would also be wise to lock in rates as far in advance as possible.” (Read more).
Tags: buy house canada, canada real estate, canadian mortgage, mortgage rates canada, vancouver homes
