RBC raises their Variable rate mortgage pricing.

Earlier this year, we saw a few lenders raise their Variable rate pricing from Prime less 0.75% to Prime less 0.50%…. Most other lenders did not follow.. But it made us wonder if there was some concern that the Bank of Canada might hold off on any increases in the  Bank Prime this year, as was widely forecast by most Experts….

Sure enough, the recent stock market collapse, the European and US debt crisis has put any potential rate hikes on the back burner with most Economists forecasting for no increases until next year…

Fast forward to today… The Financial Post reported that RBC would increase their pricing from Prime less 0.65% to Prime less 0.45%.   This move would indicate that the RBC Economists think the Bank of Canada is not in any hurry to raise the Prime rate…. or they believe the BOC may even lower the rate at some point…

Mortgage Brokers still have access to better priced Variable rate products through their wholesale channels but will other Lenders raise their pricing in the coming weeks?   We’ll be watching and will let you know…

 

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