Posted by: Daryl & Wendy Ashby | April 14, 2010

RBC Raises Fixed Rates

April 13, 2010   Percent growth

 While bond yields keep climbing and so will the fixed rates.

Just after midnight, the Royal Bank of Canada (RBC) announced it will push up fixed rates by another 1/4 percentage point, effective tomorrow. This change applies to all fixed terms.

The new 5-year posted rate will be 6.10%. After April 18, this will also probably be the new qualification rate for variable and 1-4 year fixed mortgages .

The industry’s benchmark 5-year fixed “special offer” rate will be now 4.70%.

RBC says: “We have held off from handing [rate increases] on to consumers but now it has become necessary. The rise is tied to our long-term funding costs which have gone up considerably.”

No other banks have followed RBC yet, but they likely will soon.

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