The Inevitable is Here: Interest Rates on the Rise
Here we go folks, it’s the moment we’ve been waiting for: Canadian banks are starting to raise interest rates on fixed-rate mortgages. Well, not all banks, at this point it’s Royal Bank of Canada (Canada’s largest bank), TD Canada Trust, and Laurentian Bank who have made changes to their mortgage rates. It seems unlikely that the rest of the banking community will take much longer to follow suit.
So why now? According to a spokesperson for Royal Bank, the bank is citing increased costs that have significantly gone up since December.
The biggest increase affects five-year mortgages with all three banks increasing the posted rate from 5.25 per cent to 5.85 per cent. This means that a homeowner with a mortgage of $250,000 and an amortization of 25 years would pay $88 more a month at the new five-year fixed-rate.
We knew that it was coming and it’s only the beginning. Are you prepared?
