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

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Royal Bank (TSX:RY) 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.

The changes take effect Thursday.
 
  • Mortgage Guy Geoff on 2016-11-15 10:52:07 AM

    I hope nobody is surprised by this. The big banks lobbied the government to impose changes that disadvantage the big banks' competition (the monolines.) Then Econ 101 takes over - less competition = higher pricing.

    Now they'll tell you the changes are to address a supposed high risk housing market and the rise in pricing is to address the resulting new cost structure. I guess we'll see when the next quarterly profits are announced.

  • noxxe on 2016-11-15 9:20:08 PM

    Financial Post on November 15th 2016
    The Royal Bank changes affect new customers with fixed rate loans for terms of three, four and five years. The fixed rate for three years rises from 2.69 per cent to 2.79 per cent, four years goes from 2.79 per cent to 2.89 per cent and five years rises from 2.94 per cent to 3.04 per cent.
    Who's lying?

  • Jim T, Adventmortgage on 2016-11-15 9:20:19 PM

    Let the games begin..........

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