Officially all the major banks in Canada have raised their 5-year posted rate. TD was the first national bank that discreetly increased its 5-year posted rate from 5.14% to 5.59%. Other lenders followed with Scotia being the last lender to increase its 5-year posted rate. And just like that the benchmark rate went up. If you already have a mortgage, you are unaffected. If you are house hunting even this little increase will mean that you qualify for a smaller mortgage. What if you have a pre-approval/rate hold? Unfortunately, that will not do anything for you. Although the lender is holding the rate for you for 90-120 days, you would still have to qualify using the current guidelines and current benchmark rate.
Check out my podcast with Ian Power to learn more about what is going on in the mortgage world and the overall real estate market in the lower mainland.