I recently shared the Newswire article entitled "RBC Royal Bank changes residential mortgage rates" on our Week 34 | Canadian Mortgage and Finance News [List]. In the article, Newswire reports that RBC will be raising all fixed interest rates across the board by .2% as of tomorrow.
So the question I asked was, what does this mean to the average homebuyer in Canada? As preapproval rates with our lenders are at 3.59%, the spread between us and RBC is now .3%. How much savings will that be over the 5 yr term? Here is a short soundcloud clip:
"The savings between 3.59% vs 3.89% on a 5 yr fixed term on a mortgage amount of $300K is $5678.58"
if you want to know more about why we believe interest rates could be going up in Canada, here is a video Gord McCallum and I recorded yesterday about why it is getting harder to qualify for a mortgage in Canada. Note that a lot of the same factors will contribute to higher interest rates as well.
if you have any questions, please contact us anytime or leave them in the comments section below. We promise to get back to you... because that is how we roll.