Business

TD bumps up mortgage rates again

TD said it is bumping up some of its closed mortgage rates, matching some moves last month by competitor RBC.

Five-year closed special rates goes up to 2.94%

TD bank said its five-year closed mortgage special rate will increase by 10 basis points to 2.94 per cent, effective Thursday. (Canadian Press)

A key mortgage rate is on the way up again at Toronto-Dominion Bank. 

The bank said its five-year closed mortgage special rate will increase by 10 basis points to 2.94 per cent, effective Thursday, matching a hike last month by RBC.

"We regularly review our rates and adjust them based on a number of factors, including the cost that TD pays to fund mortgages, and the competitive landscape," TD spokesperson Cheryl Ficker said in an email.

"Increasing our rates is not a decision we take lightly. We consider the impact on our customers before proceeding with any rate change," she said.

TD also bumped up its four-year closed special rate by 15 basis points to 2.69 per cent.

Banks have been pushing up mortgage rates as their costs of getting funding on the bond market has risen. Federal mortgage rule changes have also made it more expensive for lenders to to insure loans as of the end of last month.

RBC and TD both bumped the rates of their closed mortgages a month ago. RBC also brought in an additional premium on borrowers who want to take more than 25 years to pay down their mortgage.

Prior to those hikes, TD bumped up its mortgage prime rate by 15 basis points to 2.85 per cent.

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