The banks rise mortgage rates ... Yesterday Teranet reported an annualized 7.5% reduction in YVR prices, which leaves the GTA as the only major market not in convulsion, contraction or conniptions. Are the six million inhabitants here protected by a special dome keeping out the laws of economics, or are they just wingy? Naturally, time will tell if Toronto escapes the forces washing over the nation. But I think we already know the answer.
So RBC raised mortgage rates on Tuesday. A lot, actually. The five-year rate is now 3.04%, with increases also to the two- and three-year terms. Plus people choosing a longer am than 25 years will pay even more. Of course, new buyers need to also pass the MST, which remains at a riveting 4.64%, plus if you are a commissioned salesguy or have a credit score lower than six times your IQ, or plan to ever vote for Kevin O’Leary, you fail.
This comes after the TD raised its prime mortgage rate a couple of weeks ago, and a month following Wild Bill Morneau’s sweeping mortgage changes which caused panic, then havoc, in the lending industry.