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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.
