Canadian banks raise rates as finance costs rise

Royal Bank, Bank of Nova Scotia hike costs of five-year mortgage rates; rival institutions weigh options...

Royal Bank of Canada (RY-T60.010.480.81%) raised mortgage rates for the second time in two weeks, setting the stage for another wave of hikes by major banks as they grapple with higher financing costs.

“This is just the beginning,” said Canadian Imperial Bank of Commerce (CM-T73.640.640.88%) economist Benjamin Tal. “There is no reason to believe that this will stop at this point.” Indeed, by late Tuesday Bank of Nova Scotia (BNS-T50.730.230.46%) had already followed suit, matching RBC's 25 basis point hike on fixed-rate mortgages. Bankers at rival institutions were weighing their options.

Written By: Tara Perkins
Globe and Mail Update
Published on Tuesday, Apr. 13, 2010 8:15PM EDT
Last updated on Wednesday, Apr. 14, 2010 6:51AM EDT

Click here to read the entire Globe & Mail article...