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TD Drops Its 5-year Fixed Rate

TD-Bank TD Canada Trust has trimmed its posted 5-year fixed rate by 15 basis points, from 6.25% to 6.10%.

That comes with bond yields down 30 basis points from the last time fixed rates increased on April 26. (Bond yields generally lead fixed-mortgage pricing, but not always on a one-to-one basis)

If the other banks follow as expected, and barring further changes, then:

  • The new benchmark for a discounted 5-year fixed rate will drop to 4.70%. Expect banks to provide at least 20 basis points “discretion” off this rate if you’re well qualified.
  • Competitive broker rates for 5-year fixed terms are under 4.50% and may drop a bit more if bond yields don’t rebound.
  • The qualifying rate will change to 6.10% on Monday, May 17. If you choose an insured mortgage with a variable or 1-4 year fixed term, lenders will make sure you can afford the payments at this rate.

None of TD’s other rates were changed.