The Royal Bank of Canada led the way today and increased their posted mortgage rates on their 3, 4 and 5 year fixed rate terms. On the 5 year fixed rate term they increased it by a whopping 60 bps, going from 5.25% to 5.85%.
3 and 4 year terms were increased by 20 and 40 bps respectively.
These increases had been anticipated for quite some time now as the yields on the bonds had increased significantly over the past while biting into the profitability of their mortgages.
TD Bank later in the day matched these increases. We can expect the other lenders to follow suit shortly.
