26 Apr

RBC set to raise mortgage rates again

General

Posted by: Rabinder Dhillon

Royal Bank of Canada, the country’s largest bank, is leading the way on another round of mortgage-rate hikes, boosting borrowing costs Monday for the third time in recent weeks.

The rate on a five-year closed mortgage is now 6.25 per cent, an increase from the previous rate of 6.10 per cent. A one-year closed rate will, as of tomorrow, be priced at 3.80 per cent. All rates were increased by 15 basis points.

It’s the third move in a month as Canadian banks prepare for an era of rising interest rates. The Bank of Canada last week signalled that its key lending rate will rise, as early as June, as the economy recovers.

Click here to read the full Globe & Mail article

24 Apr

Inflation Rate Falls to 1.4%

General

Posted by: Rabinder Dhillon

Inflationary pressures in Canada eased considerably last month, putting into question expectations that the Bank of Canada will be raising interest rates in a matter of weeks.

Statistics Canada reported Friday that Canada’s annual inflation rate slipped by two-tenths of a point to 1.4 per cent, and the closely watched Bank of Canada core rate fell even further – by four-tenths of a point to 1.7 per cent in March.

Click here to read the full article in the Globe and Mail

22 Apr

Fixed versus Variable?

General

Posted by: Rabinder Dhillon

The fix is in, when it comes to the Canadian mortgage market. New government rules, which kicked in this week, have taken away choice from many Canadians and will force them to lock into a longterm mortgage. What nobody is talking about is how the discount on variable rate products has shrunk considerably. Prime is 2.25% but some light negotiation will easily get you 50 basis points off taking your variable down to 1.75% today.

Click here to read the full article from the Financial Post

21 Apr

Shooting for a better credit score

General

Posted by: Rabinder Dhillon

The article explains how credit scores range from 300 to 900, and that a higher score could translate into thousands saved over the life of a loan. It goes on to say that someone with a score above 760 could pay thousands of dollars less in interest per year on a mortgage than someone whose score is 600.

Click here to view the full article.

7 Apr

New Home Buyers and Mortgage Rates

General

Posted by: Rabinder Dhillon

The honeymoon isn’t exactly over, but the partners – new home buyers and low mortgage rates – drifted apart a bit last week as seven major Canadian banks raised their posted rates.
 
The increases reflect a strong bond market, with the key five-year closed rate affected the most, rising 0.6% to 5.85%.
 
It means a homeowner taking the new rate will see monthly payments on a $250,000 mortgage rise to $1,577, up from $1,489 – an increase of $88 per month.
 
The rate increases come three weeks before new federal government regulations on minimum mortgage qualification requirements come into effect April 19th.
 
Click here to read the full Calgary Sun article.