On Wednesday April 26, 2010, Royal Bank and TD Canada Trust have announced they will raise rates on Tuesday April 27, 2010. Royal Bank is raising fixed mortgage rates by 0.15 of a percentage point, while TD will raise rates by 0.15 to 0.25 of a percentage point. The result is the benchmark 5 yr fixed rate at 6.25%.
RBC announced that rates will increase from six month convertible to 10 yr closed, in addition to charges on two special fixed rate offers. The 1 yr closed rate will be 3.8%. The 10 yr closed rate will be 7.2%.
The increase is the second in April this year and the third in less than 30 days for the Canadian banks. This comes even as the Bank of Canada has kept rates steady.
On Tuesday April 27, 2010 The Canadian Imperial Bank of Commerce (CIBC), Scotiabank, and the Desjardins Group have followed suit and raised rates as well.
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