RBC stealthily lowered its fixed rates last week, and now it’s cutting them again.
RBC’s 5-year fixed mortgages are falling to 5.59% (its posted rate) and 4.19% (its “special offer” rate). RBC’s other fixed terms will also be dropping 10 bps, effective tomorrow.
The cuts come as U.S economic concerns are driving bond yields (the basis for most fixed rates) to their lowest levels since May 2009.
Odds are, the other Big 5 banks will duplicate RBC’s cuts in the next 24-72 hours.
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Update at 6:30pm ET:
BMO has matched RBC's cuts while also dropping its "low frills" 5-year fixed mortgage to 3.89%. BMO calls it "the lowest rate five-year mortgage available on the market." To be truthful, that is not an accurate claim if you count broker rates and branch discretion at other banks. However, it is the lowest national lender-advertised rate available directly to the general public.
Last modified: April 26, 2014
Do you think RBC would match that BMO low frills 3.89%? I currently have an 5 years open variable with RBC (PR + 0.7) and would prefer to stay with them, converting it to a fixed 5 yrs.
Typically no, the low frills is for new deals, new business. But it’s worth asking, as you are in an open mortgage and they may to keep the business. If not, their are other lenders offering that rate.
Call them up and quote the 3.89% rate. Can’t hurt to try!
The low frills BMO mortgage
has no flexibility compared
to any lenders traditional
mortgage. BMO traditional
5 year fixed mortgage is at
4.19. Look up on BMO website
to see all the restrictions
of their “LOW FRILLS” mortgage
I notice that quite annoyingly Scotiabank is the most reluctant to cut rates. Still not cut and sitting at 4.39 for their discounted rate. Could it me their ideology on their economic outlook? They are more positive perhaps going forward. Or do they just like to stick it to their current mortgage holders? (like me?)
Scotiabank has already lowered its rates. It’s at 4.19% with the rest of the banks.
CIBC also takes its sweet time. CIBC’s broker division [Firstline] always seems to take a 2-3 days to drop rates. As brokers with them we are constantly waiting for new rate sheets when posted rates fall.
Indeed, as of today, you are correct – great news as down bp to 4.19! However, I see in my local paper a broker for RBC is advertizing a 3.75% rate. Probably NOT worth paying the penalty to get however. Perhaps that is what is driving Scotiabank to match today.
Faramir I think you got him mixed up with another broker.
RBC brokers are prohibited from publicly advertising discretionary rates like that. In addition, RBC’s discretionary rates are not that low the last I checked.
TD has dropped also, posted 5.59%, note the 5 yr 5% cashback is 5.59%
Funny…it was strip ad at the bottom of a local paper…I will have to take a look again…it did seem strange to me
The 5-yr CAD yield just dropped to 2.22%, lowest since May 20th/09.
The 5-yr swap spread just hit 2.37%, lowest since May 26th/09.
Thanks Mr. Bernanke and the rest of the Fed!
Now, time for our big banks to lower their fixed mortgage rates again, as our fixed mortgage rates are still higher than where they were in March 2010.
The 5-yr CAD yield just dropped to 2.15%, lowest since May 16th/09.
The 5-yr swap spread just hit 2.29%, lowest since May 26th/09.
Now, time for our big banks to lower their fixed mortgage rates again, as these key benchmark rates are now about 25 bps lower than where they were when the banks last cut rates last week.