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RBC Drops Mortgage Rates

RBC 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).