The Royal Bank of Canada, TD Bank, CIBC, and National Bank are raising their mortgage rates across the board.
The hikes range up to a fifth of a percentage point. In the case of Royal Bank and CIBC and 0.15 of a percentage point for TD and National. The hikes apply to most terms between six months and 10 years.
All the banks said their posted five-year fixed mortgage rate will rise 0.15 of a percentage point to 6.6 per cent. Those rates are typically discounted for most retail customers.
Other banks are expected to follow with rate hikes of their own.
Banks finance their mortgage loans in the bond market. Bond yields have seen some upward pressure recently amid growing signs of inflation.
Bank of Canada figures show that the average yield of a five- to 10-year government bond has risen from 4.08 per cent on March 16 to 4.26 per cent on Monday. Yields on three- to five-year bonds have risen two-tenths of a percentage point in the same period.
