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.
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.