RBC is again leading the Big 6 banks with a 10 basis point rate cut on all fixed-rate mortgage terms.
This is the third such rate reduction in the last 16 days.
RBC’s posted 5-year fixed is dropping to 5.39%. Its “Special Offer” 5-year is going to 4.24% (which is totally unreflective of the actual market of course). Other banks will generally match or exceed RBC’s cuts.
Fixed-rate funding costs have plunged in recent weeks on the back of ominous North American economic data. The 5-year government yield is now 2/3 percentage point below its one-year high from April 8.
On the street, rates on 5-year fixed mortgages have nose-dived to 3.69% or less.
Sidebar: On Monday, the qualifying rate drops to 5.49% for high-ratio 1-4-year terms and variables. The qualifying rate will then move again to 5.39% on Monday June 13—assuming rates don’t change a 4th time by then.
Rob McLister, CMT
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