And you thought twice in two weeks was a shock?
How about three for three?
Monday's, if you hold a mortgage, will soon be approached with absolute dread.
Yesterday the country’s largest bank, Royal, announced another round of mortgage-rate hikes. The rate on a five-year closed mortgage is now 6.25 per cent, an increase from the previous rate of 6.10 per cent. A one-year closed rate will, as of Tuesday, be priced at 3.80 per cent. All rates were increased by 15 basis points.
And all while the Bank of Canada rate hasn't moved a single point.
Canadian banks are preparing for an era of rising interest rates and these are just the early days of what is coming.
The bond market has now pushed rates up about 1% in just three weeks. And when the Bank of Canada makes it's moves (3% spread over 6 months to a year), don't expect rates to only move in tandem with the BoC.
They aren't now... what makes you think they will when Carney finally acts?
With that in mind I invite you to check out this well done youtube video by Vancouver Condo Info.
The video is a roller coaster simulation of the last 35 years of the Vancouver Real Estate market. The actual graph you're riding is the inflation adjusted value of a house in Vancouver BC based on data collected by Royal LePage and calculated by the UBC Centre for Urban Economics and Real Estate. Some of the peaks and troughs have been rounded to keep the train from flying off the tracks, but other than that slight modification it is a precise scale model of the red line on this graph.
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