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Rates have risen

Rates Have Risen
 
Most of the lending institutions in Canada have started or are planning on raising their rates in a pre-emptive move to combat the Bank of Canada raising their rates earlier than expected. With inflation numbers proving to be stronger than anticipated by the government, it has lead many financial institutions to start raising their rates ahead of the once projected third quarter increase. Several banks thus far have raised their rates and an example of this would be the 5 year fixed rates which have increased by 0.6% which now places them in the 4.40% to 4.50% range. Not all of lenders have raised their rates yet but that is not to say that they cannot on a moments notice. The key rates to follow are the Canadian inflation rates as well as the Canada bond yield. When the bond rates rise, it shrinks the mortgage lenders spread and thus forces them to raise their rates. http://www.cbc.ca/consumer/story/2010/03/29/mortgage-rates-up.html

For more information please contact:
Alex@LakeOkanaganRealty.com

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