THE CANADIAN PRESS
TORONTO - Several of Canada's big banks said Wednesday they would cut their posted rates for fixed-rate mortgages by up to 0.25 percentage points.
The Royal Bank (TSX:RY) cut its rates for one, two and three-year closed mortgages by 0.20 percentage points, effective Thursday.
Canada's largest bank cut is posted five-year closed rate by 0.15 percentage points to 5.59 per cent, while its special five-year closed rate was cut by the same amounted to 4.29 per cent.
Bank of Montreal (TSX:BMO) cut nearly all of its posted fixed rates including its one and 10-year fixed rates by 0.25 percentage points. The bank's five-year rate was dropped by 0.19 percentage points to 5.59 per cent.
BMO offered a special five-year fixed rate of 4.29 per cent, down 0.19 percentage points.
TD Bank (TSX:TD) cut its five-year closed rate, lowering it by 0.15 percentage points to 5.63 per cent, effective Thursday.
The changes reflect lower interest rates in the bond market, where banks raise money to finance their mortgage lending.
Both banks said their variable closed mortgage rate at prime will remain unchanged.