TORONTO (CP) - RBC Royal Bank (TSX:RY) and Bank of Montreal (TSX:BMo) are raising a wide range of mortgage rates by about one-fifth of a percentage point, effective Tuesday.
The Royal, Canada's largest bank, said Monday its mortgages with terms of one year to 10 years will each rise by 0.20 of a 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.
Bank of Montreal, meanwhile, will also boost rates, reflecting the rising cost of borrowing in the bond market, where banks finance their mortgage lending.
A five-year loan at Bank of Montreal rises a fifth of a point to 6.64 per cent, while a three-yer loan increases to 6.7 per cent, up .21 of a percentage point.
Source : http://www.cbc.ca/cp/business/070409/b040965A.html
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