27 April 2018

TD spokeswoman Julie Bellissimo says various factors affect the final decision on posted rates, such as competition environment, lending cost and numerous possible risks.

In the same time, Royal Bank spokesman AJ Goodman noted the lender will also raise its posted rate for a five-year fixed mortgage next Monday. The increase, however, is smaller: from 5.14% to 5.34%.

McLister assures these hikes will not have an impact on the interest rates banks offer their mortgage borrowers. Nevertheless, the central bank uses the big banks’ posted rates for determining the stress test rate used for qualifying borrowers.

There is very high probability that other big banks will follow the suite, so starting the week after next it will be noticeably harder to pass mortgage stress test.