Real Estate

Royal Bank, TD and CIBC raise their fixed 5-year mortgage rates to 5.14%

  • Last Updated:
  • Jan 13th, 2018 12:39 pm
[OP]
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Jun 15, 2012
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MB

Royal Bank, TD and CIBC raise their fixed 5-year mortgage rates to 5.14%

CBC.ca - 4h ago
Three of Canada's biggest banks have hiked the rate on their benchmark five-year mortgage, and more are expected to follow suit.
Royal Bank and TD moved to 5.14, CIBC hiked its five-year rate to 4.99.
http://www.cbc.ca/news/business/banks-m ... -1.4484616
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8 replies
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Sep 8, 2007
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Way Out of GTA
Keeping in mind those just posted rate not the actual rates you’d get on a mortgage right now. I’m seeing 5 year fixed in the 3’s right now.

No doubt they are slowing creeping up though,
Deal Addict
Sep 12, 2017
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If these are not actual rates you get, what are the post it rates used for?
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Aug 19, 2016
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reggyDeal wrote:
Jan 13th, 2018 9:51 am
If these are not actual rates you get, what are the post it rates used for?
Same as the regular price you found in stores. Regular price $99.99, on sale for $59.99. The market price is worth around $60, but they need to make it seem as of you are getting a deal.
Deal Fanatic
Feb 22, 2011
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Yea but they are still giving low 3s
Deal Addict
Jul 3, 2007
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rates are mid 3's now with the big 5 and qualifying at around 5.59% ..... thats about double from the lows
Sr. Member
Sep 19, 2012
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Calgary
reggyDeal wrote:
Jan 13th, 2018 9:51 am
If these are not actual rates you get, what are the post it rates used for?
Any federally regulated lender has to "stress test" you at the posted rates. That means that the maximum amount of mortgage you can qualify for is directly impacted by the posted rate (posted rate goes higher, amount of mortgage you can qualify for decreases). Luckily there are plenty of non-federally regulated lenders (credit unions mainly) that still offer low rates but won't "stress test" you at the so-called "posted rate". It's still not a great result for those folks looking to max out their mortgages.
rjg4235 wrote:
Jan 13th, 2018 10:35 am
Yea but they are still giving low 3s
In fact, you can probably still get a 5-year mortgage at 2.XX%. Rates have increased to be sure, but they are still extremely low and make borrowing a quite attractive option.
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May 2, 2017
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ahlaker wrote:
Jan 13th, 2018 11:52 am
Any federally regulated lender has to "stress test" you at the posted rates. That means that the maximum amount of mortgage you can qualify for is directly impacted by the posted rate (posted rate goes higher, amount of mortgage you can qualify for decreases). Luckily there are plenty of non-federally regulated lenders (credit unions mainly) that still offer low rates but won't "stress test" you at the so-called "posted rate". It's still not a great result for those folks looking to max out their mortgages.



In fact, you can probably still get a 5-year mortgage at 2.XX%. Rates have increased to be sure, but they are still extremely low and make borrowing a quite attractive option.
Just to clarify but Isn’t the stress the HIGHER of the posted rate or the rate provided plus 2% points?

For example if offered a 5yr fixed rate of 3.5% then the person would have to qualify for 5.5% and not the posted rate which I believe is 4.99% now?

Also if more banks increase their posted rate to 5.14% then would you have to qualify under either higher of the 5.14 or the rate offerred plus 2%?
Sr. Member
Sep 19, 2012
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Calgary
ud8077 wrote:
Jan 13th, 2018 12:30 pm
Just to clarify but Isn’t the stress the HIGHER of the posted rate or the rate provided plus 2% points?
Correct. B-20 says that "at a minimum, the qualifying rate for all uninsured mortgages should be the greater of the contractual mortgage rate plus 2% or the five-year benchmark rate published". The so-called benchmark rate is a function of the big banks posted rates.

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