Canadian banks raise mortgage rate offerings

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Two of Canada's largest banks recently announced they have prematurely withdrawn their offers of ultra low mortgage rates.

According to the Financial Post, Toronto-Dominion Bank, the nation's second largest bank, raised its four-year closed fixed rate mortgage 40 basis points to 3.39 percent beginning Wednesday, after previously offering rates at 2.99 percent. The bank also introduced a five-year closed fixed rate mortgage at 4.04 percent.

Meanwhile, the Royal Bank of Canada made similar decisions concerning its mortgage rates and increased its five-year closed fixed rate mortgage product to 4.04 percent, the news source states.

“Our long-term funding costs have gone up considerably due to global economic concerns and, while we have held off in passing on these rate changes to our clients, it is now necessary for us to increase this mortgage rate,” Matt Gierasimczuk, a spokesman for the RBC, told Bloomberg News.

Canadian housing news recently received data analysis from the Canada Mortgage and Housing Corporation, which showed the seasonally adjusted annual rate of housing starts dropped to 197,900 units in January, compared with 199,900 units started in December 2011.

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