Last week we touched on TD’s 0.15% move with existing variable rate mortgage clients. There is nothing new to add as TD remains the only lender to make such a move with variable rate clients. Perhaps TD back downs down soon, perhaps other banks join them – time will tell.

The fresh news on rates is that most lenders, not all, hiked the venerable 5-year fixed rate for new applicants by as much as 0.25%.

WHAT DOES IT ALL MEAN?

A 0.25% hike equates to a ~$12.50 per month payment increase per $100,000 borrowed. Hardly a show stopper for many buyers.

These moves are not surprising considering the timing is just a few weeks after the bank’s fiscal year end, and reflective of similar moves in November’s past. The increase is usually followed by a decrease during the heat of the following Spring market.

Long term fixed rates are driven by the bond market, not the Bank of Canada – There is little chance of the BoC increasing Prime anytime soon (NOTE: the next Bank of Canada rate announcement is scheduled for December 7, 2016 – watch my website for more information from our Chief Economist, Dr. Sherry Cooper).

This is a mosquito bite, not a shark bite.