Royal Bank hikes mortgage rates again

Financial Post- Royal Bank of Canada is leading the charge to higher mortgage rates, boosting the cost to new homebuyers for the third time in less than a month.

The country’s biggest bank said Monday it is lifting the rate on most mortgages by 15 basis points.

After hikes of 60 basis points and 25 basis points respectively, Monday’s hike brings the rate on Royal’s five-year closed fixed-rate mortgage to 6.25%.

When Royal hiked rates in late March and earlier this month, the other big banks followed suit soon after.

The banks say they are raising mortgage rates because their own cost of funding is going up ahead of expected rate increases from the Bank of Canada and U.S. Federal Reserve this summer…

Royal Bank hikes mortgage rates again

Should you be concerned about new mortgage rules?

The Gazette- As of April 19, home-buyers will have to meet tougher standards to get a mortgage. Among the new rules is a requirement that borrowers be able to afford a five-year, fixed-rate mortgage,

even if they plan to stay short and variable. It will also be tougher for speculators to jump into the market as they’ll now have to make a 20% down payment on any property they don’t live in.

For those of us who simply own a home as principal residence the new rules don’t mean much. The real question is whether today’s tempting variable-rate mortgages offer a good value. The short answer is, they aren’t. After the U.S. Federal Reserve raised its discount rate a quarter point in mid-February, the writing is on the wall: Interest rates are about to rise, so you better lock in to a fixed term quickly, ideally before July…

Should you be concerned about new mortgage rules?

Should I be concerned about Ottawa’s new mortgage rules?

Financial Post- As of April 19, home-buyers will have to meet tougher standards to get a mortgage. Among the new rules is a requirement that borrowers be able to afford a five-year, fixed-rate mortgage,

even if they plan to stay short and variable. It will also be tougher for speculators to jump into the market as they’ll now have to make a 20% down payment on any property they don’t live in.

For those of us who simply own a home as principal residence the new rules don’t mean much. The real question is whether today’s tempting variable-rate mortgages offer a good value. The short answer is, they aren’t. After the U.S. Federal Reserve raised its discount rate a quarter point in mid-February, the writing is on the wall: Interest rates are about to rise, so you better lock in to a fixed term quickly, ideally before July…

Should I be concerned about Ottawa’s new mortgage rules?

Loophole may help banks to lend to first-time buyers

Financial Post- There is a small loophole in the new federal mortgage rules that could make it easier for the banks to lend out money to first-time buyers.

The federal government announced last month new requirements for anyone borrowing money for a house and needing mortgage insurance. If you have less than a 20% down payment and are borrowing from a financial institution covered by the Bank Act, you have to take out mortgage default insurance, which ensures the banks are covered for any losses resulting from payment defaults.

For principal residences, the new rules force consumers to qualify for a loan based on being able to make payments on a five-year fixed-rate mortgage, which has a much higher interest rate than variable mortgages, now as low 1.85%…

Loophole may help banks to lend to first-time buyers

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