Residential Mortgage Rates Effective March 29, 2010
April 8, 2010 by Stef Lukas · Leave a Comment
Posted Rates:
6-month 5.90%, 1-Year 5.60%, 2-Year 6.25%, 3-Year 6.25%, 4-Year 6.25%, 5-Year 6.75%, 7-Year 7.20%, 10-Year 7.55%
Best Rates:
6-month 3.50%, 1-Year 2.23%, 2-Year 2.80%, 3-Year 3.20%, 4-Year 3.59%, 5-Year 3.59%, 7-Year 4.70%, 10-Year 5.20%
Variable Rate: 1.75%
Prime Rate: 2.25%
TORONTO – Two of Canada’s biggest banks are increasing some of their residential mortgage rates effective Tuesday in the latest sign that the era of historically low rates could soon come to an end.
The biggest increase announced Monday affects five-year mortgages. Both banks are hiking their posted rate by six-tenths of a per cent to 5.85 per cent from 5.25 per cent.
A homeowner taking on a mortgage of $250,000 at the new rate of 5.85 per cent over a 25-year amortization period would pay $1,577 pre month. Prior to Tuesday’s hike, that mortgage would have cost $1489 a month, or $88 less.
The Bank of Canada is expected to begin raising lending rates this summer as it moves to fight growing inflationary pressures in the economy. The bank has kept its key overnight rate at a historic low of 0.25 per cent for more than a year to help stimulate the economy.
