RBC is lowering its 4-year fixed rate to 3.19%, according to sources at the nation’s biggest lender.
Reportedly, RBC may offer discretion below that to 2.99% for highly-qualified borrowers.
There have apparently been no changes to the rest of RBC’s advertised rates, including the big kahuna: the 5-year fixed.
Over the past year, RBC’s discounted 5-year rate has averaged about nine basis points higher than its 4-year fixed. If that spread remains the same, it would imply an impending drop to 3.29% on RBC’s 5-year fixed.
Given market volatility, however, there’s a chance banks might price higher, perhaps 3.39% +/-.
For the moment it’s all speculation, but one thing is for certain: very few lenders want to take the initiative and lower rates. It’s a wait and see game to see who moves first.
ATB Financial has demonstrated leadership with its 3.09% 5-year fixed rate. Now it’s time for the banks to show us some love.
Rob McLister, CMT
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