Big banks increase special discounted rates

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Interest rates continue to go up – and this time, it is Scotiabank and RBC following TD Canada Trust by announcing increases to special discounted rates.
 
TD Canada Trust increased its special 5-year closed residential rate 10 bps to 3.39 per cent on Wednesday – a discount off the posted rate. This was quickly followed by Scotia, which announced yesterday that it is also moving its 2-, 4-, 7- and 10-year fixed terms up 10 bps on June 22, with a 4-year mortgage now 3.09 per cent. 
 
RBC is increasing by 20 bps to 3.29, 3.39 and 3.79 per cent respectively on Monday, with the 3-year closed rate going up 10 bps to 3.75 per cent.
 
B2B Bank and Laurentian announced increased rates last week, each moving posted numbers to 3.14 per cent on a one-year fixed closed.
 
Laurentian also posted 3.14 on the 2-year fixed rate, and 3.55 for a three-year fixed; whereas B2B now has 3.19 per cent on a 2-year closed, and 3.65 per cent on a 3-year closed.
 
Danny Andonovsky, a manager of business development, mortgages in the GTA for B2B, emphasizes that the special broker rates will still be there.
 
“These are posted rates, yes,” Andonovsky told MortgageBrokerNews.ca, “but we still offer lower rates to the mortgage brokers. That relationship hasn’t changed.”
 
The move reflects First National and MCAP’s rate increases, as the two popular alternative lenders raised the 5-year fixed rates to 3.09 per cent (although MCAP continues to offer 2.94 per cent on its quick close mortgage).
 
The general move upwards was spurred by RBC a few weeks ago, when the major bank decided to move rates above the 2.99 threshold. This followed BMO’s announcement back in the early spring that it was not renewing its special 2.99 offer – now presenting a 3.19 per cent on its Low Rate five-year mortgage.
 

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