TORONTO - TD Canada Trust (TSX:TD) is raising medium-term mortgage rates by up to half a percentage point while lowering some shorter-term rates effective Wednesday.

The rate for five-year closed mortgages, one of the most commonly chosen by Canadian homeowners, goes up 0.4 percentage point to 5.85 per cent.

That's on top of a 0.2-point increase in the five-year rate announced last week by TD and several other major banks.

Analysts have noted that rates for mid-to long-term mortgages are going up in response to higher yields being paid on bond markets, where lenders finance much of their mortgage business.

The biggest change announced Tuesday by TD will be with three-year closed mortgages, which will rise by 0.5 percentage point to 4.65 per cent. The posted rate for four-year closed mortgages rises by 0.3 point to 5.14 per cent.

TD is lowering its six-month convertible mortgage rate by 0.15 point to 4.6 per cent while its one-year close mortgage rate falls 0.15 point to 3.75 per cent.

The short-term rates are influenced more by the Bank of Canada's policy rates, which are at a historical low.