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Historically Low Mortgage Rates are Vanishing

The banks offered five-year mortgages at 2.99 per cent, specials that were a boon to home buyers and revealed increasing competitiveness among Canada’s big banks, but Toronto-Dominion Bank and Royal Bank of Canada have raised their mortgage rates ahead of schedule, putting an early end to record-low rates.

This low rates debuted at a time when the housing market is poised to slow down and the Bank of Canada has been warning heavily indebted consumers to do the same.TD raised its special four-year closed fixed rate mortgage by 40 basis points to 3.39 per cent, effective 7 Feb 2012. Also
at the same time, it is introducing a special five-year closed fixed rate mortgage at 4.04 per cent.The bank’s five-year closed mortgage stands 10 basis points higher at 5.24 per cent on the same day. Although TD had said it would offer the special rates until Feb. 29.

Rates can go up and down depending on market conditions,While Banks & Financial Institutions kept this offer available as long as they could, the new rate reflects rising bond yields and the subsequent increase in the cost of funds.

Royal Bank of Canada made similar changes to its rates on 6 Feb 2012. The new rates also took effect nextday. as they define as their long term funding costs have gone up considerably due to global economic concerns and while we have held off in passing on these rate changes to our clients, it is now necessary for us to increase this mortgage rate.

RBC cut its rate to 2.99 percent in January in response to a similar cut from the Bank of Montreal, whose offer has since expired aswell.

Still there is hope and that is Mortgage Brokers. Contact for more Low Mortgage Rates options click here and apply online