Royal Bank Edging Up Mortgage Rates – Vancouver Sun← Back to Blog
Last week, the Royal Bank of Canada (RBC) announced that they would be raising many of their posted mortgage rates. Some of the new rates were put into place on Monday and have had a significant effect on several mortgage products. The largest increase was on RBC’s 5-year closed mortgage, which went up from 3.09 per cent to 3.29 per cent. The 1-year closed mortgage rate went up 0.14 percentage points to 3.14 per cent. RBC has indicated that there would also be increases of one-tenth on 2, 3 and 4-year mortgages. Most Canadian banks use the bond market to fund their lending and, unfortunately, bond prices plunged last month. Of the major Canadian banks, RBC is the first to respond by announcing an increase to mortgage interest rates, but it appears that other mortgage lenders will follow suit.
If you have any questions on this article / any other mortgage related questions, please don’t hesitate on contacting Gabe Hoffart
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