On Tuesday morning, I woke up to a mailbox filled with articles about major banks raising their rates. Headlines in the Financial Post read “TD bank, cibc, laurentian and RBC announce mortgage rate increases” followed by various predictions and analysis. These banks raised their 5 year fixed rates to about 5.69%. This is quite high considering the overnight rate is 1%.
These are however the rates banks charge to the public and general customers. If you are using a broker or mortgage professional you can still get loans from these banks at rates as low as 4.04%. It amazes me that banks will rather offer a strange, random customer better rates then a loyal client. Get someone working for you.
With a mortgage agent you can still access rates of 3.89% on a 5 year fixed. 2.2% on a variable and 3.3% on a 3 year fixed rate on approved credit. Even with the mortgage rule changes that went into effect on March 18, 2011 buyers have options. 35 year amortization periods are still available. Many lenders do not use CMHC to insure their loans, thus making lending easier and less restrictive. This means that you do not have to rush to ever beat any dead line. Make real estate decisions with logic, not fear and emotion.