Royal Bank and TD Canada Trust have both announced that they will be hiking their rates on posted, five-year mortgages.
On Monday, March 26, both banks announced they would be increasing their five-year closed rates to 5.44 per cent, and their special fixed four-year closed to 3.49 per cent. Their five-year variable rate, which varies depending on the banks’ prime lending rate, will rise 10 basis points to prime plus 0.20 percentage points.
According to a story released by CBC: “In a BMO report Friday, its economists argued that with the U.S. recovering gathering steam, central bankers on both sides of the border are becoming more comfortable with the economy and less so with historically low interest rates that in Canada are fanning the flames of the hot housing market.”
To learn more, check out this article by Canadian Business: http://www.canadianbusiness.com/article/76942–royal-td-raising-mortgage-rates-in-reversal-of-recent-trend-at-canadian-banks
