Canwest News Service April 27, 2010 - Royal Bank of Canada is leading the charge to higher mortgage rates, boosting the cost to homebuyers for the third time in less than a month.
The country's biggest bank said yesterday it is lifting the rate on most mortgages by 15 basis points.
Yesterday's hike brings the rate on Royal's five-year closed fixed-rate mortgage to 6.25 per cent.
TD Canada Trust wasn't far behind, raising rates yesterday afternoon on some mortgages between 15 and 25 basis points. The rate for its five-year closed fixed-rate mortgage is now 6.25 per cent as well.
When Royal hiked rates in late March and earlier this month, the other big banks followed suit soon after.
The banks say they are raising mortgage rates because their own cost of funding is going up ahead of expected rate increases from the Bank of Canada and U.S. Federal Reserve this summer.
Homebuyers are facing higher costs on other fronts as well, with more stringent mortgage-lending rules that took effect April 19 and the looming introduction of the harmonized sales tax in Ontario and B.C.