RBC raises fixed-term mortgage rates by 20 basis points

A Royal Bank of Canada (RBC) sign is seen outside of a branch in Ottawa, Ontario, Canada, May 26, 2016. REUTERS/Chris Wattie

(Reuters) - Royal Bank of Canada said it boosted interest rates on its fixed-term mortgages by 20 basis points, ahead of an anticipated increase in the benchmark interest rate by Canada’s central bank.

The new two-year rate is 2.54 percent while the three-year rate is 2.64 percent and the five-year rate is 2.84 percent, for mortgages with amortization periods of 25 years or less.

“This rate increase reflects recent activity by competitors, and the current costs that we incur for funds on the wholesale market as well as other costs and market considerations,” RBC spokeswoman Jill Anzarut said in a statement.

The Globe and Mail had earlier reported about RBC’s fixed-term mortgages rates hike.

Reporting by Aishwarya Venugopal and Sangameswaran S in Bengaluru; Editing by Cynthia Osterman and Lisa Shumaker