Jim Flaherty’s announcement last month enforcing stricter mortgage regulations was a call to arms on Bay Street. The street, which plays host to Toronto’s financial almighty, would play scene to a duel more commonly associated with America’s Old West rather than Canada’s financial epicenter. The big banks of Canada waited anxiously, eyeballing their opponents, to see who would be the first to reach for the trigger. On Monday (February 7th) of this week they got their answer as TD Canada Trust shot their posted 5-year fixed closed rate up 25 basis points. As is usually the case in these matters of nerve, once the first shot rings out more will follow as was to prove the case as CIBC responded by increasing their 5 year closed fixed rate 25 basis points later on that day. So what will be left for the borrower when the dust clears and the banks finally holster their pistols? Continue reading →