If other banks follow suit as usual, posted will drop to 5.19%. That’s Canada’s lowest posted long-term mortgage rate since the 1950s.
This is the kind of contrary thinking we like, but hopefully it lasts.
Back in March, with bond yields running up 30 basis points, RBC did the same thing and surprised the market by cutting rates. (See: Opposite Day For BMO & RBC) A few weeks later it changed course and hiked rates the most since 1996. (See: RBC Lifts Fixed Rates. Big.)
RBC is the nation’s biggest mortgage lender and a frequent trend setter for rates. Today’s move lowers its “special offer” 5-year fixed rate to 3.79%. These changes take effect tomorrow.
Update: All major banks have now moved their posted 5-year fixed rates to 5.19%.
* 5-year bond yields typically lead 5-year fixed mortgage rates.