THE DAVISVILLE & LEASIDE INSIDER

THE DAVISVILLE & LEASIDE INSIDER

Monday, April 26, 2010

Fixed mortgage rates rising - 2nd increase in April

Royal Bank, Canada's biggest chartered bank, is raising fixed mortgage rates by 0.15 of a percentage point, effective Tuesday.

TD Canada Trust will also raise rates by between 0.15 and 0.25 percentage points on Tuesday.

The increase is the second in April for the banks and the third in less than 30 days.

Flexible rates are not affected by the increase, a Royal spokeswoman said.

The increase leaves both banks' benchmark five-year fixed rate at 6.25 per cent, up one percentage point over a month. It went up 0.25 percentage points on April 14 and 0.6 points at the end of March.

The Royal's increase matches the rise in the bank's long-term funding costs and bond yields, the spokeswoman said.

The Bank of Canada warned April 20 that the period of very low interest rates was coming to an end. Analysts expect the central bank's key rate to go up in June.

Source: CBC News
Last Updated: Monday, April 26, 2010 | 3:43 PM ET


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Source: CBC News
Last Updated: Monday, April 26, 2010 | 3:43 PM ET

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