TD Bank increases fixed mortgage rates, follows RBC hike

TORONTO – TD Bank has raised its fixed mortgage rates, ahead of a similar move by the Royal Bank of Canada as the costs of borrowing rise.

TD spokeswoman Cheryl Ficker says the lender has raised its special rate offer for a four-year fixed mortgage by five basis points to 2.44 per cent and a five-year fixed mortgage by 10 basis points to 2.69 per cent.

READ MORE: Here’s how much mortgage payments will go up as banks hike rates

RBC has said that as of Thursday, its special offer for a four-year fixed rate mortgage will rise by 30 basis points to 2.79 per cent and a five-year fixed mortgage rate will be 2.94 per cent, an increase of 30 basis points.

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The bank’s changes are based on amortization periods of 25 years or less.

The mortgage rate hikes come amid a sell-off in the bond market and recent federal mortgage rule changes that have made it more expensive for banks to get access to cash.