Lenders have kept posted mortgage rates higher than normal for months.
Now RBC has announced the biggest cut to posted rates that we’ve ever seen. The posted rate on their 5-year fixed mortgage is falling almost one percent (0.96% to be exact). The rate change takes effect tomorrow.
This is the biggest posted reduction from any bank in at least 10 years. Prior to this the biggest cut to 5-year posted rates was 0.34% last May.
RBC also announced 1-3-year rate reductions and a slew of new rate specials. These rate specials reinforce the trend in big banks getting ultra-aggressive as of late. This will no doubt put pressure on other lenders to catch up with falling bond yields and cut themselves.
Regarding variable-rate mortgages, there hasn’t been much news on spread changes thus far. The only thing we’ve seen is a few lenders increasing from prime + .60% to prime + .80%. Most likely this is due to margin compression as a result of the reduction in prime rate.
As always, the best deals can change daily. Consult a mortgage professional and ask him/her to compare the best deals from all lenders.
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