Thursday, February 17, 2011

Flaherty Warns of Even Higher Mortgage Rates After Last Week's Jump

As predicted, another major bank increased it's posted mortgage rates to fall in line with competitor's rates.
Interest rates are going up, and the federal finance minister says he expects them to rise even more.  To see what the effect has on the actual cost of borrowing, check out this blog by clicking here.

The Royal Bank increased several of its posted and special mortgage rates on Tuesday, joining TD Bank and CIBC.

All three banks have increased the posted rate for a five-year closed mortgage by a quarter of a percentage point, to 5.44 per cent.

RBC also raised its special fixed rate offer for a five-year closed mortgage by the same percentage amount, to 4.39 per cent.

Finance Minister Jim Flaherty said he's not surprised in the Canadian Press story.

And more increases should be coming, Flaherty predicted, since lending rates have been hovering close to historic lows.

"We're likely to see higher interest rates as we go forward because interest rates are still very low."

No comments:

Post a Comment