RBC and TD Bank have decided to raise their fixed mortgage rates effectively today.
The Royal Bank of Canada’s five year fixed rate now stands at 5.14 per cent, up from 4.99 per cent. RBC’s special offer rate for a five-year fixed mortgage with a 25-year amortization moved to 3.54 per cent from 3.39 per cent.
Toronto-Dominion Bank raised its five-year fixed rate to 5.14 per cent, the first time it has been above five per cent since February 2014.
Scotiabank is currently reviewing rates and make make changes soon.
Many economists are also predicting that the Bank of Canada may raise its key interest rate target next week, a move that would likely prompt the big banks to raise their prime rates. Increases in the prime rates push up the cost of variable-rate mortgages and other loans such as home equity lines of credit that are tied to the benchmark rate.