Posted 5-year fixed rates have been stuck at 5.39% since late August. Since then, the 5-year government yield has dropped 27 basis points.*
On Saturday, RBC responded by trimming its benchmark posted rate to 5.29%. The nation’s biggest mortgage lender dropped its other fixed rates by 10 bps also. (See RBC rate table)
RBC is now advertising 3.89% as its “Special Offer” rate but that’s merely a point of reference. Market rates for a 5-year fixed are at least 30 basis points below that.
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* Funding costs for 5-year fixed mortgages are based on the 5-year bond.
I have had clients quote rates of 3.20 and 3.25 for 5 year fixed from RBC mobile reps.
When will the other major lenders (Scotia, BMO, etc.) follow this drop in the posted 5 year rate
Hi Jan, BMO just did lowered also so the others should be right behind…
Rob
Thank you very much.
The reason I am asking is that our mortgage is to be disbursed today and its rate depends on the posted rate on Oct. 12. I called Scotia Bank this morning and they insisted on 5.39. So maybe we can still get the 0.1 % or $1,500 savings.
What?? RBC quoted me 3.89% today!!
the people are not about to march into the streets there has been a fed for a hundred years nothing is going to change. think critically and don’t buy into every conspiracy theory you hear without question.
I have heard so many clients of RBC speak so poorly of them and their customer service. There is more to a mortgage than just the lowest rate. Keep in mind folks that for a $100,000 mortgage amortized over 25 years at a rate of 3.25% (if that exists) and the same mortgage at a rate of 3.49% the total savings OVER the ENTIRE five year term is $383.43. Yet look at the pre-payment privileges and you will see where the real savings are!
I believe the difference between 3.25% and 3.49% is $1,137 per $100,000 mortgaged over the 5 year term.
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