Royal Bank, the nation’s biggest mortgage lender, has trimmed several of its rates. The new rates showed up on its website yesterday with little fanfare (i.e. no press release).
The most notable change is in RBC’s posted 5-year fixed, which fell 10 bps to 5.69%. That’s the lowest it’s been since March.
RBC’s 5-year fixed “special offer” rate is down to 4.29%. (By comparison, various smaller lenders are in the 3.99% range or below.)
This move should compel the other banks to match RBC’s cut next week. That should reduce the benchmark qualifying rate to 5.69% on August 9. (The qualifying rate is what lenders use to calculate the debt ratios of high-ratio borrowers who choose variable or 1-4 year fixed mortgages).
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Last modified: April 26, 2014
RBC has been sending early renewal notices to mortgages due for renewal in the next 120 days at very competitive 5 yr fixed rates ranging from 3.89 to 3.99…
The most invested mortgage heads in the country making the decision to reverse direction and drop rates tells me a double-dip is probably in the offing. Fasten your seatbelts.