The country’s biggest mortgage lender cut rates today:
- 5-year fixed: Down 0.10% to 5.49%
- 4-year fixed: Down 0.05% to 5.14%
- 1-year fixed: Down 0.20% to 3.40%
RBC’s benchmark 5-year fixed “special offer” rate is now 4.19%. Most of the other banks typically match RBC’s special offer rates within a day or two.
Are you expecting to see other lenders to drop 0.10% on their best rates?
I think it depends what bonds do. The big banks are late to the party. Other lenders have already lowered their rates in the last week or so. I don’t think the secondary lenders can really go much lower.
TD also yesterday announced it is cutting rates on 4-yr closed by 5bps to 5.14% and 5-yr closed rate by 10bps to 5.49%.
Not really too surprising. I’d be shocked if most of the major banks didn’t follow suit for the winter months.
Eric Steinbach – Kelowna Homes
How does this work? Today TD mortgage is 5.49% (5 yr closed) with prime @ 2.25%, and in Dec. 2007 I got a 5 yr closed mortgage @ 5.49% when prime was 4.50% ? Looks to me as tho someone is making a lot more money today and its not me.
Frank you misunderstand. The posted rate today is 5.49%, which means the actual rate people get on mortgages is 3.99%.
So relative to prime rate, you weren’t screwed back in 2007.
It’s not like anyone is actually signing mortgages at the posted rate of 5.49%. Sometimes I wonder why the posted rate even exists, rather than actual rates.