Just because some banks are hiking mortgage rates doesn’t mean people should be paying more, according to one mortgage broker in Regina.
TD Bank recently announced four-year fixed mortgage rates would jump five basis points to 2.44 per cent while five-year fixed mortgage rates would hit 2.69 per cent, jumping 10 basis points. It follows a similar move by RBC, which increased its rates on four- and five-year fixed mortgages by 30 basis points, to 2.79 and 2.94 per cent, respectively.
“With the rate increase on a five-year fixed term, if you’re not shopping around, if you’re not shopping wholesale you could be paying $75 more a month on your mortgage payments,” explained broker Carrie Cardinal on the CJME Morning Show.
In terms of why banks have decided to increase rates, she explained threats of increased inflation and of the United States debt possibly increasing have forced investors to push up bond markets, and that’s where banks go to borrow.
“What these rates are impacting at the end of the day is the dollar. It’s either going to be a dollar in your pocket or a dollar in the bank’s profits.”
For those who want to keep their dollar, Cardinal recommends shopping with a mortgage broker. She said they can get wholesale rates through a variety of lenders, so homeowners won’t have to dig deeper into their wallets and pay higher rates.