Royal Bank starting next phase of mortgage rate hikes! Others to follow!!!

If you though you will not see another increase in mortgage rates,,,,think again. Royal Bank is increasing more mortgage rates and once they do others will follow. When will the banks start thinking of themselves and start thinking of everyone else?

This article is quite good and you should read it and keep it in your mind:

Globe and Mail Update Published on Tuesday, Apr. 13, 2010 12:59PM EDT Last updated on Tuesday, Apr. 13, 2010 1:19PM EDT

Royal Bank of Canada (RY-T59.39-0.18-0.30%) , the country’s largest bank, has raised mortgage rates again.

The move, which will result in a 0.25 percentage point increase in the cost of a number of fixed-rate mortgage products that the bank offers, is likely to spark another round of rate hikes among the country’s mortgage lenders.

RBC kicked off one series of hikes a little more than two weeks ago, and most experts said that was the start of a steady rise in mortgage rates.

At that time the cost of a five-year closed rate mortgage from RBC and many of its competitors rose by 0.60 percentage points to 5.85 per cent.

More Discussions in our Globe Investor forums

 Is this a good time to lock in or refinance your mortgage?

Started by: Roma Luciw

41 replies

Last post by chris_bullard
4/4/2010 5:22:08 PM

Tuesday’s increase will raise the rate for a five-year mortgage from RBC further, to 6.10 per cent, effective Wednesday.

Royal Bank’s Canadian mortgage portfolio amounted to about $148.5-billion in the latest quarter.

The banks say they are raising rates because their cost of funds is increasing.

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The banks are here for one reason and that is to make money for themselves. People must start using there heads when looking for the best mortgage out there. Deal with an experienced mortgage broker like myself and you will be getting a better mortgage package then any bank can offer to you!

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