Last month, the Bank of Canada kept their overnight rate at 1.25%. Despite that move, several major Canadian banks decided to raise their mortgage rates. TD Bank was the first to raise their fixed mortgage rate, when they increased it from 5.14% to 5.59% late last month Royal Bank, CIBC, National Bank, Bank of Montreal, and Scotiabank all followed their lead, albeit with smaller increases.
On the heels of these corporate increases, the federal bank recently raised their qualifying rate for 5-year mortgages from 5.14% to 5.34%.
Even though their qualifying rate differs from the rates banks actually use, it’s still a tool for assessing homebuyers seeking financing. If you’re putting down less than 20% on your mortgage, you must qualify for a mortgage at the federal rate.
Combined with other homebuying changes introduced this year, this couldn’t come at a more inconvenient time, as, according to a recent CIBC Capital Markets report, nearly half of current mortgages will be up for renewal this year.
if your own mortgage is up for renewal, don’t automatically renew with your current lending institution. We have access to rates from over 30 institutions, which means we might be able to offer you rates that your bank can’t.
Contact us today to see what we can do for you.