First Foundation Best Rates to Open the Week:
Term Mortgage Rates
1 Year 2.70%
2 Year 3.10%
3 Year 3.35%
4 Year 3.69%
5 Year 3.69%
7 Year 4.80%
10 Year 5.15%
ARM / Variable 2.20%
Prime Rate 3.00%
Qualifying Rate 5.19%
Toronto’s main stock index closed modestly higher Monday as financial shares gained on increased confidence in economic recovery. Crude prices fell as concerns eased over Egypt’s political crisis and how it might affect oil flows in the Middle East.
The S&P/TSX composite index rose 20.08 points, or 0.15 percent, to finish the day at 13,811.93.
With 5-year bond yields on the rise, TD Canada Trust and CIBC kicked off a round of rate hikes Monday, with quarter point increases to their five year closed mortgage rates. It’s expected that the bank’s other fixed rates are also on their way up.
Many other lenders also announced increases by mid-day and the remainder are expected to follow suit by the week’s end. It’s highly likely that the benchmark rate, used for qualification on all mortgage terms other than the 5 year fixed rate, will also rise by next Monday in response to the fixed rate increases.
The increase marks the first mortgage rate hike since federal Finance Minister Jim Flaherty announced changes to Canada’s mortgage rules last month.
An important reminder to borrowers who have obtained pre-approvals in the past few months; contact your mortgage professional as soon as possible to confirm when your rate hold will expire. Typically these expiry dates are very firm and if you’re not able to take advantage of them prior to their expiry, you could be subject to the new, higher rates.