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(Fernando Morales/The Globe and Mail)
(Fernando Morales/The Globe and Mail)

RBC hikes mortgage rates again Add to ...

Royal Bank of Canada , the country's largest bank, has raised mortgage rates again.

The move, which will result in a 0.25 percentage point increase in the cost of a number of fixed-rate mortgage products that the bank offers, is likely to spark another round of rate hikes among the country's mortgage lenders.

RBC kicked off one series of hikes a little more than two weeks ago, and most experts said that was the start of a steady rise in mortgage rates.

At that time the cost of a five-year closed rate mortgage from RBC and many of its competitors rose by 0.60 percentage points to 5.85 per cent.

Is this a good time to lock in or refinance your mortgage?

Tuesday's increase will raise the rate for a five-year mortgage from RBC further, to 6.10 per cent, effective Wednesday.

Royal Bank's Canadian mortgage portfolio amounted to about $148.5-billion in the latest quarter.

The banks say they are raising rates because their cost of funds is increasing.

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