With the leap in bond yields yesterday, a bunch of lenders are once again raising fixed mortgage rates.
TD was the first of the Big 5 today to announce a rate increase. Canada’s second largest bank is hiking rates as follows:
- 5-year posted fixed rate: 5.85%, up 0.40%
- 4-year posted fixed rate: 5.14%, up 0.30%
- 3-year posted fixed rate: 4.65%, up 0.50%
That 5-year move is the biggest increase in almost a year.
TD also announced it is lowering its 1-year rate by 0.15%.
If history is a guide, the other large banks will likely announce their own increases in the next 24 hours.
Assuming the banks all move their 5-year posted rates to 5.85%, that will amount to a 0.60% increase in the last nine days. On a $200,000 5-year mortgage with 25-year amortization, that equates to over $5,700 more interest over five years.
If there’s one bright side, it’s that IRD penalties will potentially fall for certain people who are breaking their fixed-rate mortgages early.
Last modified: April 28, 2014
Thank you so much for keeping us up to date with this information. Following your site has helped us get a preapproval with a great rate at just the right time.
Much appreciated!
Glad to help Jen. Thanks for making us smile. :)
is it a good time to lock in a two year fixed mortgage rate? thanks
Hi Cindy,
Thanks very much for posting.
In general, CMT avoids making borrower-specific recommendations in the forums. There are too many details that need be discussed before suitable recommendations can be provided.
For any questions specific to your personal situation (like should I refinance?, should I go fixed or variable?, etc.) you may be best served by calling or emailing a mortgage planner you trust. You can often get the answers you require with just a brief phone call.
For more general questions we’re always happy to oblige, time-permitting.
Cheers,
Rob
Thank you Rob.
Hi Rob and Melanie. I run my own mortgage blog and very frequently refer or direct people to this site.
Thank you for helping us Brokers stay on top of the game.
Cheers,
Dave Gallant
Metro Mortgage
I have a six year flex variable at prime -.375 (1.875) and am thinking of locking in since rates are going up. Any thoughts?
Adrian
Just to let your readers know that RBC and National bank announced today that they are also raising their mortgage rates. Basically the same 40 basis point increase on the five year fixed.
I imagine BMO, CIBC and Scotiabank will jump on the bandwagon later today or tomorrow.
http://www.newswire.ca/en/releases/archive/June2009/10/c5086.html
RBC just raised rates
Thank Rob, I locked in my 5-year fixed closed mortgage at 3.65% when I saw the bond price jumped.
Just found this site today…some very helpful information here. Well done!
I’m still in a variable @ prime – .7%. Talked to my broker today and can still get a decent fixed rate, but I’m hard pressed to give up such a good variable rate.(And because of the low rate, I have actually set my payments a few percent higher to pay down the principal every month). Any comments?
I would sit on that prime -.7%
With prime looking to stay put for the foreseeable future I think you are in a great place. Anyone who had a prime +.8 made a wise move locking in when rates were around 3.55%
I’m at prime +0.6%. Should I stay at this or try and lock in if I can still get a relatively good rate?
I would say switch to fixed if you can get around 3.85% now. prime +.6 = 2.85% now. It will go up higher than 3.85% quick after next year.
Can anyone tell me if discount lenders (INVIS, MCAP) will likely follow the banks in the near future in raising their rates for 3-year or 5-year fixed mortgages? Thanks!!
They already have.
PS. INVIS is not a lender. They are a broker. They have access to the same rates as most other brokers.
Hi Rob
long time reader on ur site, first post..
i was just wondering if i should lock in, i have prime -.90,$359000 with about 4yrs left. knowing prime might possibly stay this low till june 2010, what do u think
thx
Is it true that banks are planning
to restucture the prime rate they already gave to their customers by making it prime plus 1. Any comments?
Hi Eric, Thanks for the question. It may be several years till you see a rate like P-90 again, and you’ve got a huge lead over fixed rates at the moment. Nonetheless, there are a variety of other factors to consider–too many for a forum post. Give any mortgage planner (or us) a call and they can walk you through the scenarios whereby it may make sense to lock in. Cheers, – Rob
Hi Eric.. first time home buyer here. I’m gettin a rate commitment from a bank a 3.9.. would it be wise to lock in for a home that closes in late janurary 2010??