Banks increase 5 year fixed mortgage rates
Today, Toronto Dominion Bank (TD) and The Royal Bank of Canada (RBC) increased their 5 year fixed rates by 0.6%, which is a significant increase. It is expected that other bank lenders will follow with their posted rates. These institutions usually price their discounted mortgage in relation to their posted mortgage rates, so it could be a signal of rate increases to come.
However, another important indicator of mortgage rates is bond rates, which have remained fairly stable the past couple weeks. Additionally, mortgage bond spreads have also tightened, which has eased pressure on interest rate increases.
Many of my lenders are staying put for now with fixed mortgage rates, and Merix Financial has stated their fixed mortgage rates are within their comfort zone at the moment.
Working with me as your mortgage broker will give you access to many lenders and often more favorable lending policies and rates compared to the banks. Many of my mortgage lenders do not have posted rates.
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