What’s your Financial Fitness?

General Angela Calla 28 Apr

Canadians can now get their individual Financial Fitness Score to help discover how financially fit they are courtesy of Genworth Financial and the Canadian Association of Credit Counselling Services (CACCS).


This new Financial Fitness Score, the first of its kind in Canada, is available online at www.financialfitness.ca <http://click.icptrack.com/icp/relay.php?r=14777983&msgid=371287&act=G0OG&c=191858&destination=http%3A%2F%2Fwww.financialfitness.ca> . The score is based on attitudinal and behavioural questions that were developed from financial fitness data collected in a survey sponsored by Genworth Financial and CACCS. The tool helps people determine how well they’re managing their finances and provides useful information that is based on their fitness level.


“Having a firm understanding of what it means to manage your money is so important to peace of mind,” said Henrietta Ross, CEO of CACCS. “It’s quick, easy and free, but so rich in value. Understanding your score and what you can do to improve your situation is very empowering.”


The fitness tool is just one of a series of initiatives provided by Genworth Financial in collaboration with CACCS, and was launched as part of the recent Homeownership Education Week events.

Keeping Rental Expenses Tax Deductable

General Angela Calla 28 Apr

Whether it’s a duplex, a cottage or a Florida getaway, a second property can be a rewarding investment over time. But if you’re not careful, it can prove taxing as well. A little planning goes a long way.


The following are some common mistakes financial planners see in their practice, as well as some tips for minimizing the tax hit.


If you borrow money to buy or repair a rental property, make sure you arrange things so that the interest on the loan is tax deductible. That means keeping mortgages and lines of credit for the rental property completely separate from loans taken out to buy or improve your principal residence, which are not tax deductible.


“You can’t unmix money,” says Warren Baldwin, Regional Vice President of financial planning firm TE Wealth in Toronto.


Click here <http://click.icptrack.com/icp/relay.php?r=14777983&msgid=371287&act=G0OG&c=191858&destination=http%3A%2F%2Fwww.theglobeandmail.com%2Fglobe-investor%2Fpersonal-finance%2Ftax-centre%2Feasing-the-tax-hit-for-investment-property-owners%2Farticle1993437%2F>  for the full Globe and Mail article.

Average Debt Load for 76% of Canadians is $119k, you can cut these costs with some planning

General Angela Calla 28 Apr

Canadian household debt loads hit record territory this year, surpassing even levels south of the border. A new Statistics Canada paper <http://click.icptrack.com/icp/relay.php?r=14777983&msgid=371287&act=G0OG&c=191858&destination=http%3A%2F%2Fwww.statcan.gc.ca%2Fpub%2F11-008-x%2F2011001%2Farticle%2F11430-eng.pdf>  out last Thursday sheds some light on just who’s most indebted and why.


First, the aggregate numbers: household debt for Canadians more than doubled between 1984 and 2009 – from $46,000 to $110,000, largely due to mortgage debt. Growth has accelerated even faster since 2002 (it’s continued to climb this year, though economists expect the rate of accumulation will slow as borrowing costs rise).


The paper, by senior analyst Matt Hurst, lists several reasons for the surge. Some are familiar – low interest rates and a cultural shift to consumerism. Others include increased demand in the housing market from the boomers, heightened competition and deregulation in the banking sector, new financial products, more relaxed credit constraints and more women in the workforce.


More than three quarters, or 76%, of Canadians carried debt in 2009 and, among those who did, the average load was $119,000.


Click here <http://click.icptrack.com/icp/relay.php?r=14777983&msgid=371287&act=G0OG&c=191858&destination=http%3A%2F%2Fwww.theglobeandmail.com%2Freport-on-business%2Feconomy%2Feconomy-lab%2Fdaily-mix%2Fyounger-families-most-snared-by-debt%2Farticle1994548%2F>  to read more in the Globe and Mail.


Canadians Struggling to save and pay off debt; 38% have no savings

General Angela Calla 21 Apr

Canadians struggling to save and pay off debt; 38 per cent have no savings

LuAnn LaSalle, The Canadian Press

Many Canadians are finding themselves caught between the struggle to save money and repay their debts, says a survey from TD Bank.

And with interest rates expected to rise this summer, clearing debts probably won’t get any easier. In the report, 38 per cent of Canadians surveyed said they had no savings at all.

“I think it’s worrisome,” said Carrie Russell, senior vice-president of retail banking at TD Canada Trust “The reality is that we are all going to come into unexpected expenses from time to time, be it a car or health or a job loss and this can really derail you and your family if you have no cushion behind you,” Russell said from Toronto.

Russell said the major factor preventing Canadians from saving is that they are using disposable income to pay down debt, whether it be credit cards, car loans or mortgages.

She recommends a cushion of three to six months of income saved to get through unexpected financial shocks.

One-third of Canadians who responded to the recent online survey also said they didn’t have enough money to cover living expenses like rent or food bills.

The survey found that 54 per cent of the 1,003 people who took part in the survey said it was a real struggle or impossible to save.

Repaying those debts will only get harder if the Bank of Canada raises interest rates this summer, as expected. A spike in Canada’s inflation rate in March was driven by higher food and gasoline prices.

Shopping is also taking a toll on tucking money away for a rainy day.

Russell said 12 per cent of those surveyed said they couldn’t save because “they shopped beyond their means.” Nineteen per cent of those surveyed under the age of 35 said they spent too much on shopping, she added. “This really comes down to the age-old question of budgeting, choices and skills required in making plans for a healthy financial future.”

Changing habits starts with children and making sure they understand how much things cost and understanding the difference between a “want” versus a “need,” she said.

“We don’t send our children into the deep end of the ocean without teaching them how to swim. We shouldn’t send our children out into the workforce and independent lives without giving them the basics of financial literacy.”

On the flip side, 30 per cent of respondents said they had enough money saved to cover living expenses for at least four months.

Russell said those who were most successful with savings were “paying themselves first” and using automatic savings programs to put money aside.

Certified financial planner Marta Stiteler had some tough love for Canadians without nest eggs: learn to live with less and start saving every month even if it’s just $50.

“People are using the downturn as an excuse,” said Stiteler, an associate at Pillar Retirement in Hamilton, Ont..

“The reality is you just have to bite the bullet and save. If you don’t save you’re going to spend it because your lifestyle will eat up that money,” she said. “It’s about discipline.”

The Vanier Institute of the Family has said that average family debt in Canada hit $100,000 in 2010.

“I do think many families are behind the eight ball and the public supports really aren’t there where they once were,” said Katherine Scott, director of programs at the Ottawa-based organization.

Scott said local credit and non-profit agencies can provide resources to help families get a financial plan so they can “start to dig themselves out of that hole.”

The online survey, based on a representative sample of Canadian adults, was conducted from Dec. 2 to Dec. 7, 2010, by Environics Research for the bank. http://ca.finance.yahoo.com/news/Canadians-struggling-save-pay-capress-2491348161.html?x=0

Bank of Canada maintains overnight target rate at 1%

General Angela Calla 12 Apr

Good Morning,

As suspected rates have held steady this morning, meaning no change to variable rate mortgages or lines of credit with the current payments. Fixed interest rates (which are tied to the bond market) have been on the rise over the last week on average 30 basis points. With timing being a key componet to financial freedom we encourage you to ensure that anyone with a renewal or shopping for a home had a rate held in for as long as possible to have the most amount of options moving forward. Should you have any questions, require a rate hold for you or someone you care about, or ensure you have the mortgage to result in the most savings please email us today at acalla@dominionlending.ca. This morning’s press release from this morning is below.

Have a good week.

Bank of Canada maintains overnight rate target at 1 per cent

OTTAWA –The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent.

As anticipated in the January Monetary Policy Report (MPR), the global economic recovery is becoming more firmly entrenched and is expected to continue at a steady pace.  In the United States, growth is solidifying, although consolidation of household and ultimately government balance sheets will limit the pace of the expansion.  European growth has strengthened, despite ongoing sovereign debt and banking challenges in the periphery.  The disasters that struck Japan in March will severely affect its economic activity in the first half of this year and create short-term disruptions to supply chains in advanced economies.  Robust demand from emerging-market economies is driving the underlying strength in commodity prices, which is being further reinforced by supply shocks arising from recent geopolitical events. These price increases, combined with persistent excess demand conditions in major emerging-market economies, are contributing to the emergence of broader global inflationary pressures.  Despite the significant challenges that weigh on the global outlook, global financial conditions remain very stimulative and investors have become noticeably less risk averse. 

Although recent economic activity in Canada has been stronger than the Bank had anticipated, the profile is largely consistent with the underlying dynamics outlined in the January MPR.  Aggregate demand is rebalancing toward business investment and net exports, and away from government and household expenditures. As in January, the Bank expects business investment to continue to rise rapidly and the growth of consumer spending to evolve broadly in line with that of personal disposable income, although higher terms of trade and wealth are likely to support a slightly stronger profile for household expenditures than previously projected.  In contrast, the improvement in net exports is expected to be further restrained by ongoing competitiveness challenges, which have been reinforced by the recent strength of the Canadian dollar.

Overall, the Bank projects that the economy will expand by 2.9 per cent in 2011 and 2.6 per cent in 2012. Growth in 2013 is expected to equal that of potential output, at 2.1 per cent. The Bank expects that the economy will return to capacity in the middle of 2012, two quarters earlier than had been projected in the January MPR.

While underlying inflation is subdued, a number of temporary factors will boost total CPI inflation to around 3 per cent in the second quarter of 2011 before total CPI inflation converges to the 2 per cent target by the middle of 2012. This short-term volatility reflects the impact of recent sharp increases in energy prices and the ongoing boost from changes in provincial indirect taxes. Core inflation has fallen further in recent months, in part due to temporary factors. It is expected to rise gradually to 2 per cent by the middle of 2012 as excess supply in the economy is slowly absorbed, labour compensation growth stays modest, productivity recovers and inflation expectations remain well-anchored.

The persistent strength of the Canadian dollar could create even greater headwinds for the Canadian economy, putting additional downward pressure on inflation through weaker-than-expected net exports and larger declines in import prices.

Reflecting all of these factors, the Bank has decided to maintain the target for the overnight rate at 1 per cent. This leaves considerable monetary stimulus in place, consistent with achieving the 2 per cent inflation target in an environment of material excess supply in Canada. Any further reduction in monetary policy stimulus would need to be carefully considered. 

Information note:

A full update of the Bank’s outlook for the economy and inflation, including risks to the projection, will be published in the MPR on 13 April 2011. The next scheduled date for announcing the overnight rate target is 31 May 2011.

Summer rate hike looms with bank on election pause

General Angela Calla 8 Apr

JEREMY TOROBIN – The Globe and Mail

As the recovery gains momentum, it’s increasingly clear a summer interest-rate hike is in the cards, even if Mark Carney is very unlikely to touch borrowing costs this Tuesday.

And for the first time in more than a decade, one of the Bank of Canada’s most effective tools for signalling to borrowers and financial markets that rate moves are coming – the quarterly Monetary Policy Report – will arrive smack-dab in the middle of a federal election campaign, between the leaders’ debates, no less.

As a result, while the central bank is an independent institution and Mr. Carney will give his assessment of the economy’s progression as he sees it, the Governor’s messaging might be more nuanced and subtle than usual.

There’s not much the central bank can do to keep any element of Wednesday’s report – a forecast paper full of commentary backed by charts, graphs and statistics – from becoming fodder for the campaign, with the party war rooms eager to co-opt any outside “proof” that their approach to the economy makes the most sense. Conservative Leader Stephen Harper might argue that a sunnier outlook shows his party deftly steered the country out of recession and now deserves a majority, or that a cautious tone shows this is no time to change governments. Liberal Leader Michael Ignatieff could point to an improved forecast as “evidence” that the country can afford to forego corporate tax cuts without fear of costing jobs.

That’s all par for the course, and as long as Mr. Carney says nothing that could be construed as actively endorsing a particular position, the rest is out of his hands.

“Politicians may try to leverage whatever the Bank says, but [central bank governors are] independent for a reason – because they need to do what’s right for the economy,” said Eric Lascelles, chief economist at RBC Asset Management in Toronto.

Similarly, David Laidler, a former adviser at the Bank of Canada who is now an economics professor emeritus at the University of Western Ontario, said while Mr. Carney and his rate-setting panel have likely looked at their drafts line-by-line “with a don’t-get-the-Bank-into-political-trouble lens,” they also have to “do it as they see it.”

The real trick for Mr. Carney will be to convey (a) that the Canadian and U.S. economies are growing more quickly than expected, (b) that even though inflation is tame right now it could soon become less manageable without tighter policy and, (c) that Canadians must therefore step up efforts to trim their debt before rates go up – all without thrusting himself into the campaign by giving voters the wrong impression that an endless stream of crushing mortgage hikes, for example, is just around the corner.

Luckily for Mr. Carney, there are still so many trouble spots that could trip up the global recovery (Libya, Portugal and Japan, to name a few) that there’s little urgency to raise rates right now.

The central bank wouldn’t hesitate to move rates mid-campaign if it felt that were absolutely necessary, as it did in October, 2008, when Mr. Carney joined other Group of Seven policy makers in a co-ordinated, surprise reduction after Lehman Brothers collapsed. But in the current context, when it’s still a judgment call, and with the loonie well above parity with the U.S. dollar, it’s hard to imagine Mr. Carney taking the risk of being accused of interfering with the election.

Though most economists say the next increase is more likely in July than in May, the quarterly forecast is one of the better opportunities Mr. Carney will have between now and then to reinforce the message that rates are lower than he’d like them to be. The report – which will undoubtedly include upgraded forecasts for the Canadian and U.S. economies, if not the rest of the world – could also show that the central bank expects the slack left in the economy by the recession will be taken up much sooner. That would imply a faster-than-expected path back to a more normal footing.

Most economists say the “neutral” rate for monetary policy is somewhere between 3 and 4 per cent. In theory, Mr. Carney needs to boost his benchmark from the current 1 per cent to something like neutral before the slack in the economy is all gone or else inflationary pressures could get out of control. The last forecast in January said that breaking point would be at the end of next year, but many analysts now predict it will come sooner.

In a sense, Mr. Carney has spent much of the recovery walking a fine line between a strengthening domestic economy and on-again-off-again rebounds south of the border and across the Atlantic. Since October, when he paused after three consecutive increases, the Governor has repeatedly said “global uncertainties” warrant caution. At the same time, he has urged households to slash their debt before it becomes more costly, hinting that if Canada was not an export-driven economy, he would be raising rates much faster.

Still, Mr. Carney’s poker skills could be put to the test on Wednesday, when he and senior deputy governor Tiff Macklem hold a press conference in Ottawa to answer reporters’ questions about their forecast.

In keeping with standard practice at the central bank, Mr. Carney scrapped a press conference he was scheduled to hold in Calgary just days after the election was called. The MPR press conference, however, takes place no matter what.

It’s pretty far-fetched to imagine Mr. Carney, who has more than earned the extraordinary amount of respect he enjoys among his arm’s-length political masters, becoming another John Crow, whose laser focus on inflation was blamed for Canada’s last recession and who was pushed out by the Chrétien Liberals after the 1993 election.

But fears of rampant rate increases would make the electorate much more volatile, hurting the Conservatives more than anyone, as they are the incumbents.

That means even if central bank watchers can glean from Mr. Carney’s forecast that a number of rate increases are on the way, he’ll probably wait until well after May 2 to spell that out.

Why Rates may hike sooner than later

General Angela Calla 7 Apr

Why we might see a rate hike sooner rather than later

Paul Vieira, Financial Post

OTTAWA — Stronger economic growth, propelled by a commodity boom and an improving U.S. job market, will prompt the Bank of Canada to begin rate hikes in July to a 2% level by the end of the year and 3.5% in late 2012, economists at BMO Capital Markets said Wednesday in releasing its updated outlook.

The investment bank’s economics team project first-quarter annualized growth of 4.4%, helping to power the Canadian economy to a 3% advance in 2011 — an improvement from the 2.7% gain BMO Capital Markets had forecast back in January. By year’s end, the country’s unemployment rate should drop to 7.4% from its present 7.8% level.

“The combination of low interests and high commodity prices are fuelling the domestic economy,” said Sal Guatieri, senior economist at BMO Capital Markets.

Consumer spending is expected to ease from 2010 levels, to 3%, but he said exports and a 12.8% surge in non-residential business investment would pick up the slack.

Canada also stands to benefit from an improving U.S. economy, poised to expand 3.2% in 2011, as the job market begins to turn around based on March data, he added. Monthly job gains in the 200,000-plus range could boost confidence among U.S. firms and households, translating into increased spending and investment.

Risks to the outlook include soaring oil prices, which could deliver a “serious blow” to the North American economy; Europe’s sovereign debt woes, with Portugal on the brink of an international bailout and concerns mount over Spain; and any further fallout from Japan’s earthquake and subsequent nuclear crisis.

The Bank of Canada, which issues its next rate decision on April 12, is likely to upgrade its outlook for 2011 based on the data that has emerged, Mr. Guatieri said. In its last outlook tabled in January, the central bank expected 2011 growth of 2.4%, with a first-quarter annualized advance of 2.4% — which is now well below estimates in the 4% and 5% range.

“The economy is growing much faster than the bank expected, implying less inflation-dampening slack,” Guatieri said, adding he expects the Bank of Canada to move up the timetable as to when the output gap — a measure of spare capacity — closes to mid-2012 from the previous call of the end of next year.

“The central bank will now likely move a little more aggressively on rates than planned.”

While Canada inflation remains muted, with the core rate at 0.9% as of February, Mr. Guatieri said BMO expects price increases to pick up steam in the months ahead. The central bank sets rates to achieve and maintain 2% inflation.

“We are at a low point on inflation,” he said. “The central bank can’t delay rate hikes indefinitely or it might face an inflation problem down the road.”

The European Central Bank is set to raise its benchmark rate on Thursday, even though sovereign debt worries have resurfaced, on inflation concerns. http://www.financialpost.com/news/features/might+rate+hike+sooner+rather+than+later/4568528/story.html

Angela Calla Mortgage Team Monthly Newsletter

General Angela Calla 6 Apr


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April 2011




Angela Calla, AMP

Dominion Lending Centres

Phone: (604) 802-3983
Fax: (604) 939-8795




Dominion Lending Centres’ national spokesperson is Don Cherry. Don has a recognizable presence and voice across Canada, and is best known for being the ‘flamboyant yin’ to Ron MacLean’s ‘yang’ on the popular Coach’s Corner segment on Hockey Night in Canada. He was recently named one of the top 10 Canadians of all-time in the nationwide CBC program “The Greatest Canadian”. Don was also ranked 23rd in the May 2010 issue of Reader’s Digest as one of the most trusted Canadians – the perfect image required when educating Canadians about using a DLC mortgage professional for their mortgage financing needs. Click here to view our first commercial for this campaign, which is currently airing across Canada on such programming as CTV News, Global News and Sportsnet hockey games.



Door Replacement Guide:
Are you planning to replace a door in your home? To avoid unpleasant surprises, you should take proper measurements and carefully verify your needs. Rona offers a step-by-step online Planning Guide for Choosing a Door to help you correctly compile the information you will need before visiting your home renovation centre.


About DLC Leasing Inc

* DLC Leasing is the leasing division within Dominion Lending Centres Inc.

* Our leasing programs provide up to 100% financing on business-related equipment.

* Leasing options include new equipment leasing; used equipment and vehicle leasing; customized solutions through vendor finance programs; and lease-backs –where the lender buys equipment from a business owner and the owner leases it back.

* Technology, heavy equipment and trailers, furniture and hospitality equipment, and manufacturing and industrial equipment are just a few examples of available leasing options.

* With access to multiple lending sources, Dominion Lending Centres’ Lease Professionals can cater to leasing deals for a variety of credit scenarios ranging from A to C credit quality.

* Because many of our Lease Professionals are also licensed mortgage agents, we can offer standard equipment leases and creatively structured solutions for seasonal, new or growing companies.

* Working with someone who is both a lease and mortgage expert enables you to even use commercial and residential mortgage and property credit line products, alone or in combination with lease financing, to help achieve the best solutions for your equipment acquisition needs.

* Our Lease Professionals can even break up large-dollar transactions into multiple leases across a number of funders to ease and simplify the approval process.


Welcome to the April issue of my monthly newsletter!

This month’s edition takes a look at a Bank of Canada study into mortgage discounting, as well as highlights why it’s important to get the lenders competing for your business when your mortgage is up for renewal. Please let me know if you have any questions or feedback regarding anything outlined below.

Thanks again for your continued support and referrals!





Have you ever wondered why banks have posted mortgage rates, yet they’re willing to offer mortgages below these interest rates to some borrowers?

The Bank of Canada (BoC) wanted to find out how consumers can get the very best mortgage rate, which led to the undertaking of an extensive study on mortgage discounting. 

According to their research, Canadians who get the best mortgage rates are those who:

1. Bargain

  • Research proves that bank profits “are significantly higher in haggle environments.” As a result, banks prefer not to put all of their cards on the table.
  • This leads to “price discrimination”, whereby banks give better deals to skilled negotiators and well-informed borrowers.

2. Have larger mortgages

  • “Since few negotiate the renewal of their mortgage… (this) provides lenders with an incentive to attract consumers with larger loans who have large outstanding balances at the time of renewal.” 


3. Use a mortgage broker

  • The report states that brokers lower the “search costs” of getting multiple quotes. Multiple quotes (lower search costs) are strongly correlated with lower rates. 
  • “Over the full sample, the average impact of a mortgage broker is to reduce rates by 17.5 basis points.”  That’s ~$1,670 of interest savings on a typical $200,000 mortgage over five years.
  • Bank “mortgage specialists offer convenience to consumers, although they do not reduce search costs. This is because they work for one lender only.” 

Click here to read the working paper on the BoC study.

It’s important to understand that mortgage brokers can offer lower rates because of the large volume of mortgages we successfully fund with lenders each year. This enables mortgage brokers to offer our clients wholesale versus retail pricing.

And while mortgage brokers have access to hundreds of products available through dozens of lenders, when you approach a lender directly for a mortgage, that lender can only offer one line of mortgage products – their own.

As always, if you have questions about finding the right mortgage product and rate to suit your specific needs, I’m here to help!




While most Canadians spend a lot of time and expend a lot of effort in shopping for an initial mortgage, the same is generally not the case when looking at mortgage term renewals. Omitting proper consideration at the time of renewal costs Canadians thousands of extra dollars every year.

It’s important to never accept the first rate offer that your existing lender sends to you in the mail around renewal time. Without any negotiation, simply signing up for the market rate on a renewal will unnecessarily cost you a lot of extra money on your mortgage.

It would be my pleasure to have the lenders compete for your mortgage business at renewal time to ensure you receive the best mortgage options and rate catered to your specific needs. After all, just because a lender had the best available product or rate for you when you obtained a mortgage one, three or five years ago does not mean the same holds true in today’s market.


With products and rates changing on an ongoing basis, you can’t possibly know what the best offering is for your unique situation without having me – a mortgage professional – do some investigating on your behalf.

It’s my job to look at every rate and product change from each lender – including banks, trust companies and credit unions – every morning to ensure I find the best deals for my clients. I also have the inside scoop on specials available through dozens of lenders thanks to the large volume of business I fund through these lenders each year.

Often times, your existing lender will send a highball renewal rate to their existing clients in the hopes that you will simply sign the renewal form and send it back. Your best bet is to come to me prior to your renewal date or forward the lender’s renewal offer to me before signing anything. That way, you can rest assure you’re getting the best possible mortgage product and rate that suits both your current and future mortgage needs.






  • We are Canada’s largest and fastest-growing mortgage brokerage!
  • We have more than 1,900 Mortgage Professionals from more than 300 locations across the country!
  • Our Mortgage Professionals are Experts in their field and many are ranked among the best nationally.
  • We work for you, not the lenders, so your best interests will always be our number one priority.
  • We have more than 100 mortgage programs, making it easy to choose the best fit for your unique situation.
  • We close loans in all 10 provinces and 3 territories.
  • We can process your mortgage in as few as 7 days.
  • We are the preferred mortgage lender for several of Canada’s top companies.
  • Dominion Lending Centres’ Mortgage Professionals are available anytime, anywhere, evenings and weekends – and we’ll even come to you!



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Fixed interest rates creeping up

General Angela Calla 5 Apr

Canada’s big banks raising residential mortgage rates ahead of busy period

By The Canadian Press

TORONTO – Several of Canada’s big banks are raising most of their fixed-term mortgage rates ahead of the busy spring real estate market.

TD Canada Trust (TSX:TD) TD said the biggest increases will be for mortgages with terms of five to 10 years, which will all go up by 0.35 percentage points starting Tuesday.

The move was matched by CIBC (TSX:CM).

The Royal Bank (TSX:RY) raised its rates on mortgages for five and 10-year terms by 0.35 percentage points and its seven-year rate by 0.15 percentage points. The posted rate for five-year closed mortgages — one of the most popular types of loans for Canadian home owners — will rise to 5.69 per cent.

Scotiabank (TSX:BNS) raised its posted rate for a five-year closed mortgage by 0.4 percentage points to bring it to 5.69 per cent.

Fixed mortgage rates, which are closely tied to the bond market, tend to climb when traders shift investment activity to riskier equity assets from bonds, which are considered safer.http://ca.finance.yahoo.com/news/Canada-big-banks-raising-capress-671069751.html?x=0