Head's up - Mortgage rates going up end of day

[MortgageQueen]

I have received several notifications rates are going up at end of day. If you need a mortgage and haven't applied yet, maybe good to get the Application in this afternoon.
I don't imagine it will be a huge jump, but the bigger the mortgage the more it will affect you.

Just an FYI.
MQ

[Frugalbigmama]

General idea of rates?

[MortgageQueen]

Depending who you went with. 2.59% fixed (very few at the moment. Mostly 2.65 to 2.75)
Variable 2.1% to 2.25%

If you went with a restricted type mortgage, you might get slightly less, but usually not worth it.

[jimmydee]

Any particular reason why it's going up today?

I have received several notifications rates are going up at end of day. If you need a mortgage and haven't applied yet, maybe good to get the Application in this afternoon.
I don't imagine it will be a huge jump, but the bigger the mortgage the more it will affect you.

Just an FYI.
MQ

[MortgageQueen]

Well, it was actually last Friday, but . . . it is interconnected with the election.

Since the 19th bond yields have gone up last few weeks and the rates follow.

[dougboswell]

Not so sure of the impact of the election but more so due to the US expecting their prime rate to go up in Dec. for the first time in 9 years.

https://www.ratespy.com/rates-up-what-now/

[MortgageQueen]

An update on the slow but steady increase of rates. This time it's RBC.
See article excerpts from Financial Post article below. (highlights mine)




Royal Bank of Canada, the country’s second- largest lender by assets, said it’s raising some mortgage rates even as the costs for funding home loans declines.


The increases come even as costs in the part of the bond market where banks fund their mortgage lending have fallen. The yield on the Government of Canada’s benchmark five-year bond touched 0.7 per cent Monday, the lowest level since August, when it hit an all-time low.


Discount rates for home loans by Canada’s five biggest banks are starting to creep up. Five-year fixed rates for the banks’ best clients have climbed five basis points to 2.84 per cent since Dec. 4 for most of the lenders, while variable rates for those preferred customers are at 2.35 per cent, up from 2.3 per cent a month ago, according to searches on the website.


“The changes we’ve made to our residential mortgage rates reflect a number of factors (beyond the bond yield) including changes in market conditions driving increased short term funding costs and long term/wholesale funding costs,” Royal Bank spokeswoman Jill Anzarut said in an emailed statement.


The last time RBC raised its mortgage rates was on Nov. 4, which it didn’t disclose in a press release, she said. Other lenders have raised rates as well, including Bank of Nova Scotia, which lifted the rates on its fixed-rate products on Dec. 10, according to spokeswoman Heather Armstrong.


Royal Bank’s special discounted rate for its five-year fixed mortgage will rise to 3.04 per cent from 3.03 per cent effective Jan. 8, the Toronto-based bank said Tuesday in a statement. A five-year variable mortgage, which is tied to the bank’s prime rate, will rise to 2.6 per cent from 2.45 per cent. The lender also raised its discounted rates for two-, three- and four-year fixed mortgages.


http://business.financialpost.com/pe...starting-jan-8

[jasperandchar]

@MortgageQueen can you share the going rates at the moment, I was offered 2.89% for a 4 year fixed rate but then noticed that TD has a special offer at 2.74% for 4 year fixed rate so I sent my person at Scotiabank a request to atleast match Td's rate if not beat

[dougboswell]

@MortgageQueen can you share the going rates at the moment, I was offered 2.89% for a 4 year fixed rate but then noticed that TD has a special offer at 2.74% for 4 year fixed rate so I sent my person at Scotiabank a request to atleast match Td's rate if not beat

Why are you looking at only TDCT and Scotia for your mortgage? Several lenders are offering today as low as 2.49% on a 4 year fixed. You can find lower 4 year rates out there but if they are from a broker there probably is a cashback included to give this lower rate.
You need to ask questions. On a 4 year fixed rates may vary depending on the rate hold period or whether it is high ratio or conventional. With Scotia and TD you need to make sure that they will not place you into a collateral mortgage if you are using them for the first time. Big banks like to offer you lots of other products along with the mortgage. Interest rates can vary from branch to branch for the same bank on the same mortgage.
Today consumers are finding that the big 5 banks may not be serving their best interests. There is nothing wrong with going to another lender if it means more money in your pocket which means it is not adding to their bottom line. There are some mortgage lenders out there that are owned by the big 5 but you can only access them through a mortgage broker. Because there is not a bricks and mortar store the rates will be lower for the same mortgage. If you do not need the mortgage in the next few days, shop around and ask questions and get the best mortgage for yourself

[jasperandchar]

Why are you looking at only TDCT and Scotia for your mortgage? Several lenders are offering today as low as 2.49% on a 4 year fixed. You can find lower 4 year rates out there but if they are from a broker there probably is a cashback included to give this lower rate.
You need to ask questions. On a 4 year fixed rates may vary depending on the rate hold period or whether it is high ratio or conventional. With Scotia and TD you need to make sure that they will not place you into a collateral mortgage if you are using them for the first time. Big banks like to offer you lots of other products along with the mortgage. Interest rates can vary from branch to branch for the same bank on the same mortgage.
Today consumers are finding that the big 5 banks may not be serving their best interests. There is nothing wrong with going to another lender if it means more money in your pocket which means it is not adding to their bottom line. There are some mortgage lenders out there that are owned by the big 5 but you can only access them through a mortgage broker. Because there is not a bricks and mortar store the rates will be lower for the same mortgage. If you do not need the mortgage in the next few days, shop around and ask questions and get the best mortgage for yourself

I spoke with my broker and because my mortgage this time around at renewal is below $35K only TD and Scotiabank will only lend (do the mortgage)

[MortgageQueen]

Hi Jasperandchar.
Are you retired or fixed income? I'm just wondering if you'd be better off with a variable rate instead? It's low and with such a small amount owing, are you sure you want to lock in for 4 years?

Another possibility. . . (I'm out on a limb here as I don't know what your situation is) is a Home Equity Line of credit. You can pay that down as fast as you like, but the original amount is still available to you should you have emergencies or major home improvements in the future.

In regards to 2.74%. . . that doesn't even beat a 5 year rate. I think if maybe you mention you may be looking into a HELOC at a credit union, your bank will either shrug their shoulders and wave goodbye or they will drop the rate some more. Do you have any local credit unions nearby? Wouldn't hurt to talk to them. . see what they say. . .
Keep us posted. MQ

[jasperandchar]

Hi Jasperandchar.
Are you retired or fixed income? I'm just wondering if you'd be better off with a variable rate instead? It's low and with such a small amount owing, are you sure you want to lock in for 4 years?

Another possibility. . . (I'm out on a limb here as I don't know what your situation is) is a Home Equity Line of credit. You can pay that down as fast as you like, but the original amount is still available to you should you have emergencies or major home improvements in the future.

In regards to 2.74%. . . that doesn't even beat a 5 year rate. I think if maybe you mention you may be looking into a HELOC at a credit union, your bank will either shrug their shoulders and wave goodbye or they will drop the rate some more. Do you have any local credit unions nearby? Wouldn't hurt to talk to them. . see what they say. . .
Keep us posted. MQ

sending you a personal message - thanks

[MortgageQueen]

I responded.

For everyone's information, never assume a bank will offer you the best product. Even if for whatever reason you feel you have to stick with them, try and get some independent advice (from a broker) There's likely options you may not know about.

[MortgageQueen]

Fixed Rates seem to be ever so slightly dropping. Hopefully a bit more towards Spring? We'll see.. . . .

[Ciel]

@MortgageQueen -I read the real estate columnist's newest article (3rd last page of Feb. 26 View issue) and he stated that the postal code of the property that one is wanting to mortgage can affect one's ability to get financing? If true, that is just like auto insurance quoting-some areas are pricier than other areas.