RBC FIRST OF BIG BANKS TO RAISE MORTGAGE RATES

The Royal Bank of Canada has increased its fixed-rate mortgages – as the economy gains ground and the bond market strengthens.

RBC’s posted five-year fixed mortgage rate has moved to 5.14 per cent – up  from 4.99 per cent.

Their  special rate for a five-year fixed with  25-year amortization – moves to 3.54 per cent from 3.39.

Yields on the bond market – where the big banks raise money – have been heading upward since late last year.

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.

That initiative would push up the cost of variable-rate mortgages and other loans – such as home equity lines of credit.

Michael Kramer

About Michael Kramer

Michael is the afternoon news anchor on the New Classical 96.3FM and hosts the program Zero to 1800.