As of Wednesday, consider it a little more expensive to become a homeowner.
Although unrelated – but a reaction to the rising cost of funds – TD Bank raised mortgage rates, as the Fed announced its hike in U.S. interest rates.
This is the third hike in mortgage rates in the past several months, as TD followed rival RBC in raising the cost of its five-year mortgages by 1/10 of one per cent to 2.94 per cent, and their four-year special rate by 15/100t of 1 per cent to 2.69 per cent.
Although the Canadian economy will preclude any interest rate hike by the Bank of Canada for some time, the pressure brought on by the U.S. move in rates, with more to come, has put pressure on the bond market, where the chartered banks finance mortgage loans.
And as long as that pressure holds – regardless of the Bank of Canada holding overnight rates steady – Canadian mortgage rates could continue to trend higher.