I received this email from a Krista Rumberg - Mortgage Broker yesterday. I wanted to let everyone know what might happen soon with Mortgage Rates.
Ben Officer, CD REALTOR®
RE/MAX Real Estate (Edmonton)
This is the email:
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From: Krista Rumberg
Please note the article below.
Bond yields went up today so it is very likely that we will see a major increase in fixed interest rates. (RBC has already increased their rates)
If you have clients sitting on the fence get them pre approved for a rate hold TODAY!!!
Rate sheet attached
Krista Rumberg
Mortgage Specialist
Integrity First Mortgage Solutions
Office: 780.946.6222
Cell: 780.983.9119
Fax: 780.946.7758
e-mail: Krista@MortgageSimple.ca
www.MortgageSimple.ca
Good Afternoon,
Here is a update on Bond Yields and Spreads:
Bond yields spiked today due to the economic news. The positive employment report this morning (refer to my article below "Canada's unemployment rate falls to 8.4%, first decline since recession") was the big driver. People are selling off GOC bonds believing the BOC may be forced to raise rates earlier than expected. Even though the day isn’t over, as of 2pm EST, the bond yield is up to 2.86%. That is a jump of 22 BPS today and 44 BPS in the last two days.
The Spread is down to 1.13% based on that update (final numbers will be as of 5pm EST). RBC has already raised their 4 & 5 year rates by 35 BPS and this is on the heels of the rate increases in Australia. Are we in for rate increases? Sure looks that way.
Here are links to Canadian Mortgage Trends and Bloomberg that show the same data: http://www.canadianmortgagetrends.com/
http://www.bloomberg.com/apps/quote?ticker=GCAN5YR%3AIND
I think it would be a smart idea to look at those who are deciding on whether to buy or not and lock into a mortgage very soon! Brace yourselves ... looks like things may change!
Transmitted by CNW Group on : October 9, 2009 13:43
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RBC Royal Bank changes residential mortgage rates
TORONTO, Oct. 9 /CNW/ - RBC Royal Bank announced today that it is increasing its residential mortgage rates effective October 10, 2009.
The changes are as follows:
Fixed Rate Mortgages
Six-month open 6.45 per cent (increase by 0.10 per cent)
Six-month convertible 4.65 per cent (increase by 0.10 per cent)
One-year open 6.45 per cent (increase by 0.10 per cent)
One-year closed 3.80 per cent (increase by 0.10 per cent)
Two-year closed 3.95 per cent (increase by 0.10 per cent)
Three-year closed 4.45 per cent (increase by 0.10 per cent)
Four-year closed 5.29 per cent (increase by 0.35 per cent)
Five-year closed 5.84 per cent (increase by 0.35 per cent)
Seven-year closed 6.80 per cent (increase by 0.20 per cent)
Ten-year closed 6.95 per cent (increase by 0.20 per cent)
Variable Rate Mortgages
Variable Closed RBC Prime + 0.00% (no change)
Special Fixed Rate Offers*
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Six-month convertible 4.15 per cent (increase by 0.10 per cent)
Four-year closed 4.24 per cent (increase by 0.35 per cent)
Five-year closed 4.54 per cent (increase by 0.35 per cent)
Seven-year closed 5.35 per cent (increase by 0.20 per cent)
* The rates indicated are special discounted rates and are not the
posted rates of Royal Bank of Canada. To calculate a rate discount
compare the Special Offer rate against the posted rate for the
applicable term.
Special Offers may be changed, withdrawn or extended at any time,
without notice. Not available in combination with any other rate
discounts, offers or promotions.
Krista Rumberg
Mortgage Specialist
Integrity First Mortgage Solutions
Office: 780.946.6222
Cell: 780.983.9119
Fax: 780.946.7758
e-mail: Krista@MortgageSimple.ca
www.MortgageSimple.ca
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