Interest Rates on the Rise.

The article below was published last week in the Financial Post regarding the recent hike of mortgage interest rates.

Bank of Montreal completes the count: All Big Five banks raise five-year rates

With a late-day announcement yesterday, Bank of Montreal became the fifth of Canada's Big Five banks to raise its mortgage rates this week. BMO hiked its five-year fixed-rate closed-term mortgage by 60 basis points to 5.85%, matching increases announced earlier in the day by Canadian Imperial Bank of Commerce, Bank of Nova Scotia, National Bank and Desjardins Group. Royal Bank of Canada, Toronto-Dominion Bank and Laurentian Bank announced on Monday that their benchmark five-year rates would increase to 5.85%. "The era of historically low mortgage rates is coming to an end," said Sal Guatieri, senior economist, BMO Capital Markets.

I beg to differ Sal. At Hamilton Community Credit Union our Five Year Closed mortgage rate is at 4.15%, still near our historic lows. That’s a difference of 1.70% from the big 5 banks.

Better yet HCCU is currently offering a promotion on our mortgages. Yes it gets better.

If you apply for a mortgage before June 1st you can take advantage of our introductory interest rate of 1% for the first four months of your 5 year term. After the four months the interest rate will adjust to whatever our 5 year rate is at that time, currently at 4.15%, to a maximum of 4.50%.

Apparently the era of historically low mortgage rates is still alive at HCCU.