Royal Bank of Canada Announces Mortgage Rate Hike Effective January 8th

RBC, the first to announce interest rate hikes by .10 percent on their 2 to 5 year closed fixed mortgages and by 0.15 percent on their 5 year closed variable mortgages effective January 8th. Expect the other major banks to follow suit.  Although the impact won't be dire, in my opinion, it may spark worries that mortgage rates have bottomed out and will rebound upwards.  Given the economic turmoil of oil prices falling and the loonie tumbling to a new 12-year low, below 71 cents U.S.  There are, of course, opinions that the Bank of Canada may continue to cut the overnight lending rate further; eyes will be on BOC's next rate announcement on March 4th, 2016.   

Resource:  Financial Post, BNN, Huffington Post

Thomas Cung

Thomas Cung

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CENTURY 21 Atria Realty Inc., Brokerage*
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