RBC Raises Fixed Rates Again

RBC RBC just raised all of it’s fixed rates by 15 basis points, effective tomorrow.

Here’s the press release.

RBC’s 5-year posted rate is now 6.25%. If other banks follow, it will increase the qualifying rate for variable and 1-4 year fixed terms accordingly.

RBC’s “special offer” 5-year fixed is now 4.85%.  As usual, most people should be able to find full-featured 5-year fixed terms for at least 1/4 point off that number.

RBC aside, we’ve seen a couple of discount lenders come out with lower 5-year fixed promo rates in the last few days. In addition, bond yields have been taking a one-week respite from their march higher. So it’s interesting that RBC has decided to lift rates today.

  1. Could this rate hike be partially a reaction to last week’s bond yields? They were over 3.2% last week.
    That and the fact they probably want to get away from those narrow margins of March.
    I must admit though, I personally was predicting May for a rate hike (assuming yields stayed over 3.1-3.2%).

  2. TD just matched RBC on the 5 year fixed.
    Looks like the BOC qualifying (benchmark) rate will be increasing again next Monday.
    ARM spreads are lower, so they no longer make up for the low spreads we’ve been used to on the fixed rate side.
    We’re seeing a move to more “rational” spreads now for fixed rates.

  3. Like always though, there are always a few lenders who hang back a few days longer and still offer “good” discounted rates.
    I expect all Big banks will follow RBC but many Non Banks are taking advantage of this time to keep their rates low in comparison. Especially since Bonds have lowered again today so there is no real rush.

  4. It looks like TD and RBC might have jumped the gun on this fixed rate increase and have egg on their face.
    If Govt. Canada 5 yr bonds keep declining as they did yesterday and this morning, its impossible to imagine other FI’s following suit at this time.
    Oh the fun other bankers have watching the competition get it wrong!

  5. Banker,
    CIBC just matched.
    If Banks got their fill of volume in the first two quarters, why not make some extra margin in the second half?
    Time for brokers to support the monolines — they’re keeping rates low for now.

  6. Scotiabank too. I guess someone has to cover all the low rate and ridiculously low margin pre-approvals they were handing out last month when the big banks were clawing at each others market share. To do such a big about face indicates to me that the big banks Treasury guys must have screwed up the hedging? Anyone else have any ideas as to what is going on?
    No better time for consumers to pass on the big banks current fixed term offerings and shop for better rates offered elsewhere.

  7. The time to act on the fixed rates seems to have passed. Good for those that reacted to the news items posted here a month ago.

  8. I have one question to ask about what’s better deal to pick on the long run. I have two options to chose from : One of them is 3 year closed term 3.11 + 1% cash back(on the purchase price) and other one is 5 year closed term and 3.56 rate no cash back.
    Reason why cash back is considered in the offer is to help pay out the penalty on the previous mortgage…Any opinions appreciated, application was done month ago so I’m guaranteed the above rates.

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