Banks increase fixed rates

While the Bank of Canada keeps the prime rate steady, individual lenders have decided to increase their fixed rates. This week TD, CIBC, RBC and several Credit Unions increased their 5 year rates by 0.25%. This is the first rate increase since the federal government’s announcement that insurance guidelines will tighten effective March 18, 2011. Rates remain competitive and it is expected that the market will see a slight incline through to mid-March as eager first time home buyers take advantage of 35 year amortizations and low interest rates. Buyers are still able to take advantage of minimal down payments of 5%, and products remain on the market offering buyers the option of zero down payment.