Variable rate mortgages are starting to cost more as investors are wanting a higher yield for non-government securities. Last week, most lenders brought up their variable rate mortgage rate to Prime (from Prime less 0.40%). Yesterday, TD Canada Trust led the industry by increasing their rate to Prime + 1%. A few lenders have followed suit already. One lender (Firstline Mortgages) has suspended its variable rate and HELOC product until further notice.
Fixed rates have moved up marginally. Whereas a few weeks ago, you could get a 5 year mortgage at 5.45%. Today, the standard rate is at 5.79%.
