Fake(ish) News: ‘Mortgage Rates Went Up Last Week
Real News: On April 27th TD increased their ‘posted rate’.
What’s a posted rate?
It’s the list price, the MSRP — you know that price that nobody actually pays…’rack rates’.
Posted is not Prime, Prime is not Posted – there is not connection between Posted and Prime.
So, what’s it mean to you?
Not much if you are in an existing mortgage. It’s really only relevant in two situations: you are either trying to qualify for a new mortgage (that just got a bit trickier) or you are breaking a fixed-rate mortgage early (as 60% of Canadians do) and well, you will now face an even larger prepayment penalty – interesting how the banks control that.
The unaffected: Variable-rate mortgage holders. There is no change to variable rates, and no change to variable rate product rock-bottom prepayment penalties.