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The Big Banks Hike Mortgage Rates... Again

Most big mortgage lenders, including all of the Big 6 banks, have hiked fixed rates once again over the past several days.

In many cases, they’ve also reduced their variable-rate discounts, making variable-rate mortgages slightly pricier for new borrowers.

Most of the fixed-rate increases were in the range of 15 to 20 bps, although Scotiabank hikes its eHOME rates by 35 bps.

Other national mortgage lenders that have just raised rates include First National, Equitable Bank, Investors Group, Simplii, Merix, Manulife, HSBC and Tangerine.

According to data compiled by rate analyst Rob McLister, the average lowest nationally available 5-year fixed discounted rate rose to 3.07% from 2.82% following this latest round of rate hikes.

That translates into about $68 more in monthly payments for new fixed-rate mortgage borrowers, or $6,209 more in interest over the five-year term. That’s based on an average mortgage size of $526,491 among those who purchased within the past two years, according to recent data from Mortgage Professionals Canada.

Some lenders have also been quietly lowering their variable-rate discounts from prime rate, resulting in higher rates. All of the big banks are now offering special-offer 5-year variable rates of 2.05% (prime – 0.65%), up from 1.95% last week.

What’s causing this new round of rate hikes? Government of Canada bond yields, which lead fixed mortgage rates, initially plunged at the outset of Russia’s attack on Ukraine, but rebounded last week to a three-year high.

Read the article HERE

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