SmartHomeOwners

TORONTO

Two of Canada's biggest banks are raising some of their mortgage rates, effective Tuesday.

The changes affect closed mortgages with terms of three, four or five years at RBC Royal Bank (TSX:RY) and TD Canada Trust (TSX:TD).

Rates for mid-term mortgages like these tend to reflect the banks' borrowing costs on bond markets.

The Bank of Canada is also expected to begin raising its key lending rates this summer, which tend to have more influence on short-term lending rates.

The biggest increase announced Monday affects five-year mortgages. Both banks are hiking their posted rate by six-tenths of a per cent to 5.85 per cent.