Exactly two weeks after TD Bank cut its special-offer mortgage rates by a whopping 45 basis points, the bank reversed course and hiked its 5-year fixed rates by 30 bps. The bank also increased its 3-year fixed rate by 10 bps.
That was followed by rate hikes from CIBC, which on Friday reversed previous 5-year fixed rate reductions by hiking its insured product by 20 basis points. It also increased its 7-year fixed mortgage rate.
CIBC’s special-offer rate changes:
TD’s special-offer rate changes:
The big banks aren’t the only ones starting to hike mortgage rates. Other mortgage lenders such as First National and Equitable Bank have increased certain rates since last Wednesday.
The catalyst has been a rise in mortgage funding costs with last week’s sharp rise in bond yields. The 5-year Government of Canada bond yield, which typically leads 5-year fixed mortgage rates, closed at 1.07% on Friday—a 34% rise in just the past month.