Royal Bank (TSX:RY) is hiking mortgage rates and making it more expensive for homebuyers who want to take more than 25 years to pay back their loan.
The bank is raising its special offer for a five-year fixed rate mortgage to 2.94 per cent, an increase of 30 basis and 25 basis points, respectively.
The lender is also raising its special offer for a four-year fixed rate mortgage to 2.79 per cent and three-year fixed rate mortgage to 2.69 per cent, increases of 30 and 25 basis points, respectively.
The company is also introducing new rates for homebuyers who opt for an amortization period longer than 25 years.
The changes take effect Thursday November 17 2016.