TORONTO — Royal Bank of Canada is raising residential mortgage rates as borrowing costs rise in the bond market.
Canada's largest bank said Monday it is increasing six-month rates by a tenth of a point and closed loans ranging from one year to five years by a fifth of a point.
The changes are effective Tuesday and mean a three-year loan rises to 6.6 per cent, while a five-year mortgage increases to 6.65 per cent and a 10-year term to 7.4 per cent.
The changes reflect rising costs of borrowing in the bond market, where banks finance their house lending.
Bond investors are worried about rising inflationary pressures and are pushing up what they want to charge to lend their money to borrowers in the bond market.
© Canadian Press
