TORONTO – RBC Royal Bank announced today that it is increasing its residential mortgage rate offers effective August 22, 2013. The rates are increasing by 0.20 per cent. The Bank of Montreal led the way raising its rates for money earlier in the week.
It is expected that the other major banks will follow in raising mortgage rates as well.
The rate may signal an end to low interest rates. That move will impact consumers who may already face growing levels of debt.
It could also impact housing sales across Canada.
With the changes, a new fixed-rate mortgage has now increased by more than one third over the past five months.
Experts are saying that this is a strong signal that it is the start of the end of low-priced credit in Canada.
Federal Finance Minister Jim Flaherty has been pointing to the low cost of mortgages as likely to end.
New RBC Mortgage Rates
| Special Offer Rates* | ||
| Four-year closed | 3.59 per cent | (increased by 0.20 per cent) |
| Five-year closed | 3.89 per cent | (increased by 0.20 per cent) |
| Seven-year closed | 4.19 per cent | (increased by 0.20 per cent) |
| Ten-year closed | 4.59 per cent | (increased by 0.30 per cent) |
| Fixed Rate Posted Rates | ||
| Three-year closed | 3.95 per cent | (increased by 0.20 per cent) |
| Four-year closed | 4.74 per cent | (increased by 0.20 per cent) |
| Five-year closed | 5.34 per cent | (increased by 0.20 per cent) |
