Royal Bank, TD Canada Trust and Laurentian Bank announced Monday they are raising rates they charge on certain fixed mortgages, including the benchmark five-year mortgage, which will jump 60 basis points to 5.85 per cent effective Tuesday.
"This is actually a fairly large increase reflecting what's happening in the bond market lately," said Benjamin Tal, senior economist with CIBC World Markets.
Most other lenders will likely follow. These are the largest posted rate increases since 1996.
"The rates are tied to our funding costs, which change day to day," said an RBC spokesperson. "Our long-term funding cost has gone up significantly since December." (Globe story)
If your are thinking of buying or refinancing in the near future, contact your mortgage agent soon to obtain a pre-approval or to get a rate hold!
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