Royal Bank of Canada, the country’s largest lender, disclosed that 43% of its Canadian residential mortgages had an amortization period of longer than 25 years, as of July. That’s up from 40% a year earlier, and just 26% in January 2022.
That has meant higher payments for millions of borrowers after the Bank of Canada lifted its policy rate by 475 basis points in less than 18 months. RBC’s posted rate on variable mortgages is now above 7%, from around 2.5% before the central bank began tightening.The situation has also brought about the return of mortgages that are amortized for more than 35 years. At the start of last year, those didn’t exist in RBC’s Canadian mortgage book; now, such loans represent 23% of the portfolio.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Loans Loans Latest News, Loans Loans Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Analysis-Little relief for indebted Canadian homeowners as mortgage rates seen higher for longerHighly indebted Canadians hoping for relief from a rapid rise in mortgage rates are in for some disappointment, as recent moves in the bond market point to interest rates staying at elevated levels for longer than previously expected due to stubborn inflation. The yield on Canada's 5-year bond climbed on Tuesday to a 16-year high of 4.17%, up from 2.66% in March, as investors gave up on the notion that the Bank of Canada and other major central banks will pivot quickly to rate cuts. Nearly all Canadian mortgages have a term of five years or less, compared with the 30-year term that is common in the United States.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »
Decline of Biggest UK Housebuilder Fueled by Mortgage PlightBritain’s mortgage crunch is reversing the fortunes of its once-biggest housebuilder Persimmon Plc, whose reliance on first-time buyers has turned from a boon into a drag on its market value.
Source: BNNBloomberg - 🏆 83. / 50 Read more »
Albertans worried about making mortgage, rent payments as affordability crisis continuesWatch Albertans worried about making mortgage, rent payments as affordability crisis continues Video Online, on GlobalNews.ca
Source: GlobalCalgary - 🏆 50. / 61 Read more »
U.S. mortgage lender Better’s shares sink in Nasdaq debutinvestors fret over record-high rates
Source: globeandmail - 🏆 5. / 92 Read more »
Mortgage Rates in the US Jump to 7.23%, Highest Since May 2001Mortgage rates in the US jumped to a 22-year high, further squeezing would-be homebuyers already struggling with affordability.
Source: BNNBloomberg - 🏆 83. / 50 Read more »
U.S. 30-year mortgage shoots up to decades-long highBy Safiyah Riddle (Reuters) - Rates on the most popular U.S. home loan hit the highest level since 2001 on Thursday, according to Freddie Mac's weekly ...
Source: SaltWire Network - 🏆 45. / 63 Read more »