Today, RBC Royal Bank announced it will be changing its residential mortgage rates. The changes are to take effect as of March 30th, 2010.
The changes made to RBC’s residential mortgage rate are as follows:
Fixed Rate Mortgages:
Three year closed 4.35% Increased by 0.20%
Four year closed 5.34% Increased by 0.40%
Five year closed 5.85% Increased by 0.60%
Special Fixed Rate Offers:
Four year closed 4.29% Increased by 0.40%
Five year closed 4.55% Increased by 0.60%
The special fixed rate offers are special discounted rate and are not posted rate by RBC. Special offers may be changed, withdrawn, or extended at any time without notice.
Rates have increased, which is nothing new, however having an increase of 0.60% is something we have to take note of. The general increase we normally see is in the range of 0.10% – 0.40%.
We were warned by the Bank of Canada that interest rates stand a good chance to be increased earlier depending on a few factors. Some of the factors include the strength of the loonie and inflation.
I would not be surprised to see a hike in interest rates sooner than the expected date of mid 2010.
We will know whether or not rates will be increased depending on the next meeting.