RBC Royal Bank Raises Mortgage Rates

RBC Royal Bank raising mortgage rates by one-fifth of a per cent

April 9, 2007

RBC Royal Bank says it will raise a wide range of interest rates by one-fifth of a percentage point, effective Tuesday.

The Royal, Canada's largest bank, said its mortgages with terms of one year to 10 years will each rise by 0.20 percentage point. A five-year mortgage, for example, will have a posted rate of 6.64 per cent.

Rates for Royal's six-month mortgages will rise by only five-100ths of a per cent. Open six-month mortgages will have a posted rate of 8.2 per cent while six-month closed mortgages will have a posted rate of 6.5 per cent.

Royal Bank is the first to announce interest rate increases in this stable interest rate environment. If I notice other institutions following RBC's lead I'll be sure to post.