RBC Raises 5-Year Fixed Rate

People had a sense it was coming.  Fixed rates are now “officially” on the way up. 

RBC just announced it is raising its 5- to 10-year fixed rates (RBC’s Release).  It is the first increase in the posted 5-year rate in eight months, and it’s thanks to a big spike in bond yields.

5-Year-Fixed-RatesRBC’s new 5-year posted rate is 5.45%, up 0.20%.  The rest of the Big 5 will likely follow at some point.

Its “special offer” fixed rate (an industry benchmark for discounted 5-year mortgages) is now 4.15%. 

We’ve also seen several other smaller lenders increasing fixed rates, including some of the leading no-frills lenders.

Will this lead to a longer-term uptrend in fixed rates?  We’ll know in 6-12 months.

For now, the good news is that we’re still just 0.20% above the lowest fixed rates in history.  Moreover, if you want to lock in near the bottom, there are still some lenders who haven’t raised yet.

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  1. Comment avatar


    the first of many rate increases to come…..

  2. Comment avatar


    I’ve been watching this site closely for the last few weeks waiting for this news. Historically, 0.20% higher than it’s ever been is great news.
    I’m desperately trying to lock in today, 5yr @ 3.55 but my personal banker is out of the office, go figure!?!
    Keep up the good work CMT.

  3. Comment avatar


    I just tried to get better than the special offer 3.95% rate. No luck. The bank said this was the best they could do since rates are going up tomorrow.

  4. Comment avatar


    This website has saved me thousands of dollars. I learned about bond yeilds here, and last week after being warned locked in at 3.65 (TD) for 5 years. It is a home Equity Line of Credit but I locked in my full amount of almost $200K…I still have room in this new LOC but if I use it, it will be at prime plus 1%.
    Now that variable spreads are coming down I hoping this 1% will come down as well.

  5. Comment avatar

    William Arthur    

    Locked in today as soon as I saw this, just in time. The news here is an amazing resource. Thank you.

  6. Comment avatar


    Will the other 5 banks announce to raise the mortage rate tomorow? I hope I can make it tomrrow to lock my mortage at TD Bank for 5 year fixed at3.60%.

  7. Comment avatar


    Currently holding a 5 year closed variable at 2.75. It matures in 4.8 years. I can lock in at 3.84 for 5 years right now. Would it be wise to
    ride the variable for the next 4-5
    years? Any comments?

  8. Comment avatar


    I just locked in with TD for 3.7%. The information on this website is so helpful! Thanks for having it up.

  9. Comment avatar

    Chris L    

    I’m floating at 2.25% and dreaming of paying it off within 4 years. Debt is not forever!

  10. Comment avatar


    BMO also raised their 5, 7 & 10 year rates.

  11. Comment avatar


    Is this the time to lock-in in your opinion? I am at Prime + 0.8% and don’t know how to time this, or should I ride this variable until next summer (when Prime might start to go up)?

  12. Comment avatar


    Prime may go up sooner than next summer, despite what the Bank of Canada said in April.

  13. Comment avatar


    Fyi, TD has raised their 5, 6, 7 & 10 year rates.

  14. Comment avatar


    Historically hasn’t it been more profitable to ride the variable up and down rather than fixed?

  15. Comment avatar


    Ask yourself this instead:
    “When in history has prime been in a spot where it can’t go down anymore?”

  16. Comment avatar


    Now is the time to lock in if you want the stability of knowing that your rate will not change over the next 5 years. I was also on prime +0.8% so it was a no brainer for me. The difference for me was only another 0.5%.
    And I agree with Dave, prime may go up sooner than the BOC says.
    Historically it has been profitable to ride the variable however historically the fixed is almost the lowest it’s ever been.

  17. Comment avatar


    Fyi, TD has raised their 5, 6, 7 & 10 year rates.
    Posted by: Rob | June 02, 2009
    Your source please Rob? TD’s posted rates and press release say no such thing.
    FYI today I was quoted —– 5 yr fixed closed from TD. I have till the end of day to locked in.
    [Please leave out any unsubstantiated rate claims. Otherwise the site will be overrun with promotional posts. Thanks for your understanding. -CMT]

  18. Comment avatar


    Thank you so much for this information Rob of Canadian Mortgage, and to the other Rob for bringing this to my attention. My TD consultant swore up and down fixed rates will stay down until Sept/Oct this year. I got the better rate from a different TD branch just for kicks to see what the other branches were offering.

  19. Comment avatar


    2 points I would like to make:
    1. Tanesh points out that: “historically the fixed is almost the lowest it’s ever been”, while this is true, this is also true for variable rates, with no sign that they will be going up anytime soon.
    2. For those locking in now, what will you do in 5 years when rates could very well be double what they are now?
    My point being nobody can predict the future…especially economists! 🙂

  20. Comment avatar


    I suggested my friend.
    1. Take 5-year fixed rate now since it is lowest and going up. Also prime is lowest now. There is no benefit to have prime + 0.5.
    2. In 5 years, if fixed rates are double what they are now. In this case, variable rate should be prime minus. Take the variable rate rather than fixed.

  21. Comment avatar


    well said Dora! That is what I’m doing now. I’m locked in a 5 year 3.65% and after 5 years, if the rates are sky high, I’ll ride the prime minus until rates drop

  22. Comment avatar


    I just checked hsbc.ca and they’ve actually lowered their 5 year fixed closed to 3.65%. I have no idea why that is…

  23. Comment avatar


    For those of us that are riding out the PRIME – 0.9 from deals 2 years ago what is the recommendation with regards to locking in?
    I’m thinking ride this out until rates really start to increase substantially??

  24. Comment avatar


    I just locked my mortage at 3.–% for 5 years fixed with TD Bank.
    If you’re able to payoff your loan with fours, don’t lock it at 5 years or higher, you will get a better rate with 3 or 4 years mortage term.
    [Sorry. Rates must be substantiated (via a bona fide link, ad, screenshot, etc.). We’ve had a problem with lenders and brokers posting below-market rates to generate business. – CMT]

  25. Comment avatar


    5 year fixed at 3.55 with TD bank

  26. Comment avatar


    CIBC also raised their 5, 7 & 10 year rates.

  27. Comment avatar

    Brian Poncelet, CFP    

    The key is to ask is the economy getting better or worse or the same. One factor which will slow the economy is gas prices going up. So far it is near $1.00 per liter. This is like raising interest rates and will slow the recovery. Also the Canadian dollar going up so fast will also hurt many industries.
    The spread between a variable rate and the fixed is still hundreds of dollars saved on the mortgage (assuming prime does not go up for awhile) In the end the key is to get a good nights sleep. But understand over the long term this costs money. The other idea is to split the mortgage in two parts 50% variable and 50% fixed.

  28. Comment avatar

    Shawn Richardson    

    I renegotiated my current 5-year 4.9% to a 3-year 3.3%. I am quite happy since my term didn’t end until next February.

  29. Comment avatar


    I’m in the same boat–prime – .9%, with little over 2yrs on it. We’re looking to move this summer, and we’ll be porting our mortgage, but because we’re getting into a cheaper property, we’re planning to be paying down a good chunk of it while rates are low. Rates would have to shoot up pretty fast for me to consider locking in, as tempting as it is right now. There are risks hanging on to the variable, given the economic uncertainty, but overall given all the job losses I think a real quick turnaround is somewhat unlikely.

  30. Comment avatar


    On the same day that RBC raised its mortgage rates, HSBC *lowered* their 5 years fixed to 3.65% and 3 year fixed to 2.95%. INGDirect has 3.79% for 5 year fixed.
    Time to use HSBC rate to beat your own banker. If they don’t, you have options.

  31. Comment avatar


    I just locked in last week at 3.65%for 5-year fixed. Feeling good about the timing. I don’t think there’s been a better time to lock-in to a fixed rate…better get a move on.


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