Canadian Imperial Bank of Commerce, Toronto-Dominion Bank and Laurentian Bank of Canada hiked their key residential mortgage rates by 25 basis points on Wednesday, a day after Royal Bank and the Bank
Eric Lam, Financial Post
Canadian Imperial Bank of Commerce, Toronto-Dominion Bank and Laurentian Bank of Canada hiked their key residential mortgage rates by 25 basis points on Wednesday, a day after Royal Bank and the Bank of Nova Scotia did the same.
Five-year closed mortgages will now come with an annualized interest rate of 6.10% at all three banks, effective Thursday. The four-year closed rate moves up 25 basis to 5.59% at all three banks as well.
The banks raised various other mortgage products as well by amounts ranging five to 35 basis points.
This is the second round of rate hikes among Canada’s big banks in the past two weeks, in anticipation of a coming increase in the Bank of Canada’s key lending rate in the summer.
CIBC’s move follows those made by RBC and Scotiabank, which both boosted their five-year fixed rates to 6.10% on Tuesday.
Little more than two weeks ago, Canada’s major banks raised their rates between 40 and 60 basis points, again led by RBC.
Canada’s real estate market has been booming recently, with prospective home owners looking to settle their deals while interest rates are at historical lows.
The coming harmonized sales tax in Ontario and British Columbia and new, more stringent mortgage lending rules coming next week are also factors in accelerating the market.
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