Canadian Banks raises the mortgage rate

olivia · Joined: 19 Mar 2006 Posts: 13 3.76 Dollars($)

Hi

Again banks raise the mortgage rate. Sad

The Royal Bank of Canada (RBC), Bank of Montreal (BMO) and Canadian Imperial Bank of Commerce (CIBC) raises the mortgage rates by 1/10th of a percentage point. It reflects the rising cost of borrowing in the bond market.

For example, A 5 year closed mortgage at RBC and CIBC jumps to 6.75%. The new 5 year rate of BMO's is 6.04%.

Thanks
Olivia

sarah · Joined: 19 Mar 2006 Posts: 25 5.06 Dollars($)

After the Bank of Canada announced hiking its rate, the cost of variable mortgage has rises for the 6th time since the summer.

After rates hike in Tuesday, rate of the variable mortgage will be about 4.85% from 3.45% at the beginning of September, 2005. As a result, the payment on a $150,000 mortgage will rise to about $860 from $745.

There is also rise in rate to 5.25% from 4.5% having in September, 2005 for 5 year fixed mortgage.

Thanks
SJ


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