Canadian Mortgage Trends
Over the past week, nearly all of Canada’s Big-6 banks have increased their shorter-term fixed mortgage rates.
The rate hikes have largely been limited to 1-, 2- and 3-year fixed mortgage products, including both special offer and posted mortgage rates. The hikes were seen at TD, Scotiabank, RBC, BMO and National Bank of Canada, and range from 10 to 55 basis points.
But the big banks haven’t been the only lenders raising rates on those terms.
According to data from MortgageLogic.news, the average nationally available deep-discount rates for uninsured 1- and 2-year fixed rates have jumped by 27 bps and 22 bps, respectively, since the beginning of the month. In comparison, average uninsured 5-year fixed rates rose 5 bps over the same period.
Ryan Sims, a mortgage broker with TMG The Mortgage Group and former investment banker, said yield curve inversion is the main culprit.
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