19 May 2011

Canadian banks are dropping their fixed rates

It looks like the chain reaction also works in the mortgage sphere.
Today it concerns Canadian banks dropping their fixed rates one after
On Tuesday the country’s largest bank dropped its posted rate for five-year fixed mortgage by 10bps (0,1%) to 5.59%.

The same thing happened to its special five-year closed – now it’s 4.44%.
Of course, other large banks (TD and Scotia) have followed this trend and dropped their posted five-year closed by the same 10bps (0,1%) to 5.59%.
It’s obvious that if this tendency goes on, the qualifying rate for variable rate and short term fixed mortgages will go down as well. It may fall from today’s 5.69% to 5.59%.

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