5-year Fixed Rate Mortgage gets cheaper

Banks are actively lowering their 5 years fixed mortgage offerings in hopes to attract more clients at the time of fall housing market. Activity has dropped significantly and looks like mortgage lenders are in lookout for new business.

As of today, we have our special stands at 1.79% for 5 years fixed mortgage and looks like it is going down even more!

The first one to start the cutting trend was TD Bank. Last week, it reduced its rates by 0.45%. As a result, its insured 5-year fixed rate was down from 2.34% to 1.89% and its uninsured 5-year fixed rate fell from 2.44% to 1.99%.

The next day, CIBC slashed its rates by 0.05%, leading its uninsured 5-year fixed rate to 2.39% level.

RBC followed the tendency, reducing its uninsured 5-year fixed rate by 0.25% to 2.19%

Such changes reflect the recent declines in bond yields. The 5-year bond yield was down from 1.01% in June/July to a 0.80%-0.90% in August. As a rule, bond yields affect fixed mortgage rates directly.