07/12/2017 16:12 EDT | Updated 07/12/2017 16:12 EDT

Canada's 5 Biggest Banks Raise Lending Rates Within Hours Of BoC Rate Hike

If you have a variable-rate mortgage, it likely just got more expensive.

TORONTO — Canada's five biggest banks are boosting their prime lending rates by 25 basis points (0.25 percentage points) following an interest rate hike from the central bank.

Royal Bank of Canada, the Bank of Montreal, TD Bank, Scotiabank and CIBC all announced Wednesday they are increasing their prime rates to 2.95 per cent from 2.7 per cent, effective Thursday.

The prime lending rate is the rate that banks use to set interest rates for variable-rate mortgages, home equity lines of credit (HELOCs) and other floating-rate loans.

The moves comes after the Bank of Canada raised its key interest rate for the first time in seven years on Wednesday to 0.75 per cent from 0.5 per cent.

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