Residential real estate rates just went up today at the Royal Bank:
Canada’s largest bank said Monday it is increasing six-month rates by a tenth of a point and closed loans ranging from one year to five years by a fifth of a point.
The changes are effective Tuesday and mean a three-year loan rises to 6.6 per cent, while a five-year mortgage increases to 6.65 per cent and a 10-year term to 7.4 per cent.
The changes reflect rising costs of borrowing in the bond market, where banks finance their house lending.
This is interesting in light of several statements I’ve seen predicting a lowering of rates this year. If rates inch up further how much of an impact will we see in the Vancouver housing market with affordability rates nearing %75 of average pretax income?
Rate changes affect first time buyers as well as current owners. VHB has an interesting post about the renewal gap and what that can mean for home-owners and potential move-up buyers.