Banks Decrease 5-year Fixed Mortgage Rates for Home Owners
June 26, 2010
RBC has introduced its new five-year fixed rate mortgage offer for buyers of property, lowering it once again by 0.10, for a new rate 5.89. This is the second time the bank has lowered its rate in just over a month. On May 20, RBC announced it would drop its rate by 0.11 for a rate of 5.99. This latest decrease parallels maneuvers by TD Canada Trust and Bank of Montreal, who similarly decreased most of their fixed term rates by 0.1 of a percentage point.
The fixed rates dropped as Canada's bond markets showed lower yields. The domestic two-year bond dropped from 1.489% to 1.374% while the 5 year bond yield fell to 2.46 last week.
Source: Canadian Mortgage Trends