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Fixed-rate mortgages are experiencing an increase in rates, according to an article published by CBC News. Royal Bank is just one of several big Canadian banks moving to increase their rates, which is being done as a reaction to higher borrowing costs on the bond market. The rates are closely tied to the bond market, as this is where many banks finance their fixed-rate mortgages. Closed rate mortgages will see the hike in terms of small percentage increases, but even slight increases can add up over time.
For a chart showing the “slow fall” of Canada’s mortgage lending rates, visit http://www.cbc.ca/news/interactives/mortgage-rates-fixed/