The Royal Bank of Canada has raised mortgages rates for the third time in a month by 15 basis points, or 0.15 of a percentage point, on mortgages with terms from six months to 10 years.

RBC is Canada’s largest bank and many others are likely to follow suit. Just a few hours later, TD Canada Trust announced increases ranging from 15 to 25 basis points on its six-month to 10-year mortgages.

Benjamin Tal, senior economist at CIBC World Markets, said the move does not come as a surprise.

“The market is getting more aggressive about the prospect of the Bank of Canada raising interest rates. Now it seems the market is expecting even more aggressive interest rates increases than it was last week. The bond market is really a mirror to the future and this mirror is now telling us that the Bank of Canada is going to move. That’s why bond rates go up.”

Banks can adjust the rate they charge on an individual basis, depending on a variety of factors, including their clients’ financial situation or their negotiating skills.

The rise comes the same day as Canada Mortgage and Housing Corp. published a study showing that 81 per cent of recent home buyers are not worried about their current level of debt, with 67% saying that there is a chance they will pay off their mortgage sooner than required, and 27 per cent claiming to have increased regular payments to eliminate their mortgage sooner.

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Tags: Bank of Canada, mortgages rates, Royal Bank of Canada, TD Canada Trust