On April 27, 2018, Toronto-Dominion Bank (TD) lifted its posted rate for five-year fixed mortgages by 45 basis points to 5.59% as government bond yields touched their highest levels since 2011 last week. Soon after, RBC and CIBC followed suit.

What exactly is the posted rate?

The posted rate is actually the full list price or the MSRP, which nobody actually pays on their mortgage rate. Most banks use this as their suggested rate, however, contract rates are usually based on the discounts off the posted rate.

How will you be affected?

If you’re currently in a fixed-rate mortgage, there are no changes. You will only be affected if you’re looking to break your current fixed-rate mortgage with a big bank or credit union as the penalty calculation has just been changed or if you are looking to qualify for a new mortgage.

What happens to your variable-rate mortgage?

Nothing at this time, if you are in a variable-rate mortgage and have a discount off prime, there will be no changes to your mortgage at this time. The next announcement from the Bank of Canada will be on Wednesday, May 3, 2018.