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]
Deal Addict
Jun 15, 2012
2837 posts
1009 upvotes
Saskatoon

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
No need to type thank you; upvote=thanks.
Buffett, investors are focusing “not on what an asset will produce but rather on what the next fellow will pay for it.”

“Because gold is honest money it is disliked by dishonest men.” – R. Paul
8 replies
Deal Fanatic
User avatar
Sep 8, 2007
9004 posts
10280 upvotes
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
1866 posts
183 upvotes
If these are not actual rates you get, what are the post it rates used for?
Banned
Aug 19, 2016
1903 posts
758 upvotes
reggyDeal wrote: 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 Guru
Feb 22, 2011
10127 posts
12534 upvotes
Toronto
Yea but they are still giving low 3s
Deal Addict
Jul 3, 2007
3315 posts
3642 upvotes
Toronto
rates are mid 3's now with the big 5 and qualifying at around 5.59% ..... thats about double from the lows
Banned
Sep 19, 2012
1253 posts
1865 upvotes
Calgary
reggyDeal wrote: 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: 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.
Nikola Alaica, CPA, CA | Tax, Accounting, Mortgages
Member
May 2, 2017
270 posts
408 upvotes
ahlaker wrote: 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%?
Banned
Sep 19, 2012
1253 posts
1865 upvotes
Calgary
ud8077 wrote: 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.
Nikola Alaica, CPA, CA | Tax, Accounting, Mortgages

Top