Vancouver Realty Online

According to the Globe and Mail, RBC has hiked fix-term mortgage rates an additional .25 points; the second rate increase in as many weeks…

RBC hikes mortgage rates again – Globe and Mail

The move, which will result in a 0.25 percentage point increase in the cost of a number of fixed-rate mortgage products that the bank offers, is likely to spark another round of rate hikes among the country’s mortgage lenders.

RBC kicked off one series of hikes a little more than two weeks ago, and most experts said that was the start of a steady rise in mortgage rates.

At that time the cost of a five-year closed rate mortgage from RBC and many of its competitors rose by 0.60 percentage points to 5.85 per cent.

Please click HERE for the full article.

With extremely low lending rates, a competitive market environment, and market uncertainty it has become increasingly more important for you to understand the ‘ins-and-outs’ of the mortgage market. For a brief run-down check out Fred Langan’s piece at the Financial Post:

Why do mortgage rates move the way they do? Why don’t the rates march in lock step with other interest rates?

When the Bank of Canada lowers interest rates the big banks usually play chicken for several hours waiting to see who will drop rates first. At the last cut, the TD Bank was the first to lower prime. The others followed within the hour.

Please click HERE for the full article.