TD Bank Raises Variable Rate to 2.85%
Goooood morning and happy humpday, folks! Ok, here’s the thing, we get it, real estate is a hot topic and we’re fresh off the heels of major news with the Feds making it a ton more difficult to qualify for a mortgage. Their recent changes have literally removed thousands of buyers from the market and turned them into renters. You can read more about the recent mortgage changes here.
Now, let’s get to the TD news from yesterday. They announced an increase of 15 BPS aka .15% which sets their variable interest rate at 2.85% (formerly 2.7%). Now here’s why this isn’t a big deal. If you’re a TD Bank Variable Rate holder your payment just increased by a whopping $37.98 on a $500K mortgage. Now if you can’t afford that you may want to consider selling your property.
Long story short, read beyond the headlines. This is an insignificant change by only one bank so far (others likely to follow). With the Feds on a mission to control the market and the Banks mandate to profit profit profit, the trusty old fixed rate mortgage is looking pretty good going forward but again, if you’re a variable rate holder, don’t worry. That’s 20 less coffees you’ll be able to buy this month. You’ll survive.
Have a great day and don’t forget to call us to help you real estate. We’re dang good at it.