Mortgage rates are on the rise, as most Canadian banks have boosted rates across the board by as much as a fifth of a percentage point.

Bank of Montreal, CIBC, TD and National Bank have hiked their rates on all terms from one year to five years by a fifth of a percentage point. Shorter and longer terms were boosted by smaller amounts.

The benchmark five-year rate for a closed mortgage at most financial institutions is now 6.64 per cent, though heavy discounting will often reduce that by a full percentage point.

Mortgage rates are rising because of rising yields in the bond market, where mortgage financing is arranged.

The yield for the benchmark five-year Government of Canada bond was 4.11 per cent on Monday, according to data from the Bank of Canada. A month earlier, the yield was 3.96 per cent.

http://www.cbc.ca/money/story/2007/04/10/mortgage.html

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Vimal Patel, Realtor
Homelife Royalcorp Real Estate Inc., Brokerage
Cell: 416-887-3745
Office: 905-856-6611
Fax: 905-856-6232
vimal.patel@gmail.com
http://www.vimalpatel.ca" rel="nofollow">LINK

INGdirect canada still has quite low rates: for 5 year fixed it is 5.09% and 5.10% for 5-year variable. So there is some hope out there for those who want to borrow!

ING Direct does have good rates but there are other financial institutions which are still offering 4.99% to 5.04% for a 5 year fixed rate, however, most of them deal through broker channels only and it is not sure how long they will keep the rates at this level.

it seems that the rate may go up in the 5.25% range for a short while. There are also speculations that Bank of Canada may increase overnight landing rate in its next to next meeting.

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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada

I tend to agree with Pramod that prime will go up by 0.25% in the short term. However, the long term outlook is that prime will drop by almost 1 full percentage point over the next 24 months. Consequently, those who have a great ongoing variable rate would do well to ride this short-term blip out.

According to historical stats- in the long run- interest paid on variable rates have been less than those with fixed rates over the life of the mortgage.

as I mentioned before we bought house in Mississauga and we are lucky to get awesome rate throgh BMO.

Rose

Although almost every bank has increased their lending rates but I can get a mortgage for 5 yrs fixed at 4.94 to 4.99%. This 4.99% offer is open for those who apply on or before May 31. 5.09/5.10 is still wasily available. I can get variable at P-.95. But, as Mr Pramod has written these rates are available only thorugh broker channel.

Interested members may call me at 416-305-080.

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