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.
Like news like this?
Join our CMT Updates list and get the latest news as it happens. Unsubscribe anytime.
Thank you for subscribing. One more step: Please confirm your subscription via the email sent to you.