TORONTO, Cananda – The Bank of Montreal says it is raising its fixed and variable home mortgage rates by 0.1 percentage points, effective Tuesday.
The bank says the posted rate for a five-year fixed closed mortgage will be 5.44 per cent, while the posted five-year closed variable rate will be 3.1 per cent.
The increase comes as long term interest rates on the bond market tick higher in anticipation that the U.S. Federal Reserve will soon start tapering its US$85 billion a month in bond purchases.
Interest rates and home mortgage rates have been near historic lows for several years.
Low rates have been a key driver for the Canadian housing market.