Kitsilano Condo

Mortgage rates increase again in April

Two more Canadian banks have raised mortgage rates in April. The Canadian Imperial Bank of Commerce (CIBC) and the Desjardins Group raised mortgage rates by 15 basis points, or 0.15 per cent, following raises already earlier in the week by the Royal Bank of Canada and Toronto Dominion Bank.

CIBC now will charge 5.24 per cent for a five-year closed mortgage and 7.20 per cent for a 10-year mortgage. New homebuyers at the Desjardins Group, which operates credit unions in Ontario and Quebec, will pay 6.25 per cent to borrow money for five years and 7.20 per cent for a 10-year mortgage.

Canada's banks are reacting to rising costs of borrowing money for five to 10 years.  Lenders have to raise their rates because it is starting to cost more to raise capital to fund mortgages within Canada's bond markets.

Overall the economy in BC is showing signs of growth. This should underpin demand for housing, which will likely be offset by rising interest rates. This expected to cool off Vancouver’s hot real estate market