Toronto-Dominion Bank has lifted its posted rate for five-year fixed mortgages by 45 basis points to 5.59% as government bond yields touched their highest levels since 2011 last week.

Canada’s second-largest lender also increased its two-year, three-year, six-year, and seven-year mortgage rates, bank spokeswoman Julie Bellissimo said in an e-mailed statement.

“Adjusting our rates is not a decision we take lightly,” Bellissimo stated. “We look at a number of factors when determining rates including the competitive landscape, the cost of lending and managing risk.”

Despite the hike, rates “remain competitive and at historically low levels,” Bellissimo assured.

“It’s a big move, the biggest move in years,” RateSpy.com founder Rob McLister told Bloomberg. “There’s a lot of reasons why that could be — maybe they’re taking a position on rates going forward, which is not that typical; maybe they’re trying to get people to lock in and generate better spreads.”

The change came as the yield on five-year federal government bonds rose to 2.18%, the highest in almost seven years.

Toronto-Dominion’s posted rate now stands higher than those of Royal Bank of Canada, Bank of Nova Scotia, and Bank of Montreal, which each advertise posted rates of 5.14%. Canadian Imperial Bank of Commerce has the lowest posted rate at 4.99%.

There are two investments a bank is making when they decide to provide you with a mortgage: You and the Property. So, if you’re being turned down for a mortgage it could be the property that is the issue, not you. Here are some properties to avoid:

1. An apartment smaller than 40 square meters – Because they are so tiny, they could be harder to market should the bank have to take possession. Banks may not believe there is enough demand for a small apartment, so they will have a hard time getting their investment back.
2. A property in a ‘bad’ or ‘risky’ neighbourhood – Tried and true rule is to buy the worst house in the best neighbourhood you can afford. Setting up in a bad neighbourhood with a lot of crime or unemployment could be a red flag to financial institutions. Deterioration of the value of the property due to crime or negligence could be an issue here, so avoid it if you can.
3. Cookie cutter apartments in the suburbs with continuous buildup – The concern here is that people may find themselves vulnerable if the property market collapses. To a bank it’s a diversification issue: having money in too many properties of the same type could be very risky if the market goes sideways and they can’t sell them.
4. Properties that aren’t structurally sound – Never purchase a property without looking at it yourself and getting it surveyed. If a property doesn’t comply with a building code or it contains something hazardous such as lead paint or asbestos, this could affect the future saleability and  cost the owner more money down the road.
5. Properties with geological issues – This has become an increasing concern with the risks of flooding skyrocketing and global warming in the forefront of everyone’s mind. Areas on the water or built on marshland hold a much higher risk than they once did and one flood could leave a property uninhabitable.

These issues may seem extreme, but they could save you money down the road. Talk to a mortgage specialist today to get further assistance with finding the right property for you and your bank.

If you’re getting turned down for a mortgage, a good way to increase your chances is having a larger down payment for your house. This shows that you’re serious about your investment and the banks can be serious about it as well. Easier said than done right? Here are a few tips to help you out.

1. Prioritize – You have to make saving for your house a priority. Do you need a new car this year or will the one you have last for a bit longer? Do you need to go out for dinner or can you eat at home? Finding ways to cut back so you can put more money in your savings account is huge. Creating a budget is the first step, then you need to stick to it.
2. Pay off your credit cards – The interest you are paying on your credit card will be far more than the return on any TFSA or RRSP you can hope to have. Get rid of that debt and stop wasting money paying interest to other people.
3. Save more from work – The next time you get a raise, bonus, extra commission, tax refund etc. put it in a separate savings account and don’t touch it. You were living fine without the money in the first place, you don’t need to change now.
4. Utilize a TFSA – This is an ideal place to save for your first home. The money is able to grow tax free without being hit with income tax. Talk to a financial planner to help with this.
5. Borrow from your RRSP – If you already have money in your RRSP, you can borrow up to $25,000 to buy your first home. If you don’t have an RRSP, it may be time to set one up. It’s a good way to save money while at the same time getting a tax credit. You do have to pay the money back within 15 years, however, so make sure you factor that in to your considerations.

There are many other ideas to save for a down payment. Speak to a mortgage specialist today to get started.

Having bad credit is one of the main reasons that you could be turned down for a mortgage, as it represents the credit risk that financial institutions are taking if they loan you money. Repairing this score is a bit like losing weight, there is no quick fix, it just takes time and acting responsibly. Here are some things that you can do right now to put you on the right track.

1. Review your credit report – There are many places online that you can request your credit score for free. Once you have examined the report, it contains information that is used to calculate your credit score and it can sometimes contain errors. There are two common errors you can find: any incorrect listings of late payments and improper amounts owed in each of your open accounts. If you find any of these things report it to the Credit Bureau of Canada.
2. Institute automatic withdrawals or set up reminders for payment – Ensuring that your bills are paid on time is the largest contributing factor to having a good credit score. You can set up automatic withdrawals from your bank accounts or credit cards to ensure that they are paid off or set reminders in your calendar every month. Both of these will help you be more fiscally responsible.
3. Reduce your debt – This step is the most difficult, but also the most satisfying. Pay off any high-interest debt first, for most people this will be credit cards. Then work your way down. But don’t forget the minimum payments on all other debts. Just because you’re focusing on one debt doesn’t mean the others can be put on hold.

If you have any questions about these steps, speak with a mortgage specialist to assist you.

Two of Canada’s biggest banks are raising their benchmark rates for five-year, fixed-rate mortgages.

TD says as of Wednesday it increased its posted rate for five-year fixed mortgages to 5.59 per cent from 5.14 per cent.

Mortgage planner and rate comparison website founder Robert McLister says the increase is “unusual” as the benchmark rate hasn’t seen a jump of 45 basis points or more since March 2010.

TD spokeswoman Julie Bellissimo says a number of factors are considered when determining rates including the competitive landscape, the cost of lending and managing risk.

Meanwhile, Royal Bank spokesman AJ Goodman says the lender plans to raise its posted rate for a five-year fixed mortgage on Monday to 5.34 per cent compared with the 5.14 per cent currently posted.

McLister says the actual rates banks offer to borrowers are not seeing an increase, but notes the Bank of Canada uses the posted rates at the big banks to calculate the rate used in stress tests to determine whether homebuyers qualify for loans.

The Canadian Press