May 10, 2010
With inflation projections higher than expected and Canada’s bolstering economic growth, the Bank of Canada has indicated that rates will rise as early as June 1. This was an unexpected development and Canadian banks are responding quickly.
There have been a few rates have risen several times in the past few months. And a national survey showed that:
375,000 mortgage holders “are already challenged” by their current payments, and another 475,000 might be if their rate rises to 5.25% The Globe and Mail
And banks have already hiked rates to that level. RBC, for example, has its 5-year fixed rate sitting at 6.25%. And although their has been some reassessment in rates in the past week (i.e. TD and BMO decreased rates by 15 basis points on Friday), the trajectory for mortgage rates seems have to have nowhere to go but up.
Hmm…not looking good. But Canadians are fairly prudent, right? We’ll be okay…right, RIGHT?? Let’s hope so.