Two Major Canadian Banks Raise Rates!

After much noise from the financial sector regarding the pending increase to lending rates over the past few months, two of Canada's leading banks have now followed through on their threats!

The Royal Bank of Canada and TD Canada Trust announced Monday that rates for fixed mortgages are going up by between 20 and 60 basis points on three to five-year plans. This increase in rates in addition to the new federal government's mortgage qualification rules set to be in force on April 19 will have a cooling effect over time on the somewhat heated real estate markets here. Short term, those buyers that are pre-approved at today's lower rates will be making their buying decisions much quicker now in light of today's news; making their purchases before their rate guarantees expire.