The Royal Bank of Canada has increased fixed-term mortgage interest rates by 20 basis points.
The increase comes amid widespread expectations that the Bank of Canada will issue the first interest rate hike in seven years.
The two-year rate has risen to 2.54%, the three-year rate is 2.64%, while the five-year rate is now 2.84%.
In a statement, RBC spokeswoman Jill Anzarut said, “This rate increase reflects recent activity by competitors, and the current costs that we incur for funds on the wholesale market as well as other costs and market considerations.”
There is growing concern about how the Canadian economy will weather interest rate hikes. Despite record high debt levels, growth has been weak, and there is worry that heavily indebted Canadians will reduce spending to deal with rising debt payments, tipping our country into a recession.
As I’ve said before, so long as the government continues taxing Canadians so heavily while restricting economic growth through over-regulation, we will continue to move closer and closer to an economic crisis.
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