Source: The Canadian Press

TD Canada Trust (TSX:TD) and RBC (TSX:RY) are raising some of their fixed-term mortgage rates by as much as one-quarter of a percentage point, beginning Wednesday.

Both bank’s five-year mortgages, one of the most commonly chosen by homeowners in Canada, will rise 0.25 of a percentage point to 5.44%.

“Mortgage rates typically go up when bond yields rise and lately bond rates have been rising,” TD Canada Trust said in an email on Tuesday.

“This means we have been paying a higher rate to borrow in the bond market, in order to lend to customers. This increased cost to borrow has led us to increase fixed-term mortgages,” the bank said.

TD Canada Trust and RBC are also raising their three- and four-year rates by a quarter of a point, to 4.25% and 5.19% respectively.

One- and two-year closed mortgage rates are rising 0.15 of a percentage point to 3.35% and 3.60%, respectively, at both banks.

RBC will leave its seven-year and 10-year closed mortgage rates unchanged as well as its six-month convertible rate.

RBC has increased its one-year closed rate by 0.15 of a percentage point and its two-year closed mortgage by 0.15 of a percentage point.

TD Canada Trust will leave unchanged its six-, seven- and 10-year closed mortgage rates. Its one-year open mortgage rate and six-month convertible rate are unchanged.