Royal Bank of Canada to increase fixed mortgage rates as of Thursday!

Royal Bank is hiking mortgage rates and making it more expensive for homebuyers who want to take more than 25 years to pay back their loan.

The bank is raising its special offer for a five-year fixed rate mortgage to 2.94 per cent, an increase of 30 basis points.

The lender is also raising its special offer for a four-year fixed rate mortgage to 2.79 per cent and three-year fixed rate mortgage to 2.69 per cent, increases of 30 and 25 basis points, respectively.

The company is also introducing new rates for homebuyers who opt for an amortization period longer than 25 years.

The special offer rates for three, four and five-year fixed rate mortgages are 10 basis points higher than for those with an amortization of 25 years or less.

“We consider a number of factors when making changes to mortgage rates, including our funding costs and market conditions. Based on current conditions, our rates reflect the right balance between our clients’ expectations and our costs of funding mortgages,” said Mary Ellen Brown, senior vice president of home equity financing for the bank. “Today’s mortgage market continues to be a low-rate environment and gives many people the opportunity to buy a home.”

Royal Bank said the changes are for special discounted rates and do not affect the posted rates.

The changes take effect tomorrow.
  

Are you looking to buy a property?  If you like, I can tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much I could save you right now if you have an existing mortgage.

Until next time,
Your mortgage expert Evgeny Kamenskiy