RBC has raised rates again on a five-year closed fixed-rate mortgage to 6.25% which is a hike of another 15 basis points. That brings the grand total hike in the past month to be 1%. That’s a lot!
And although other banks have not yet raised rates, after RBC led the charge on the last two hikes other financial institutions followed suit.
Banks insist that the hikes are necessary due to the fact that:
The increase in rates has been expected for quite some time, but homebuyers are facing increased costs of borrowing too!
House prices are going up, more stringent lending conditions and the impending HST introduction are amongst the pressures facing homebuyers these days. If only homebuyers could lower their mortgage rates when times get tough the way banks can raise ’em. I guess that would get out of control.