Royal, BMO, Scotiabank, CIBC trim fixed-rate mortgages

TORONTO -- Four of Canada's major banks will reduce many of their posted mortgage rates by one-tenth of a percentage point, effective today.
The posted five-year closed mortgage rate, for instance, will fall to 5.49 per cent annually at Royal Bank (TSX:RY), Bank of Montreal (TSX:BMO), Scotiabank (TSX:BNS) and CIBC (TSX:CM).
The Royal, which is Canada's largest bank, took the lead in announcing the rate cuts on Monday, as it often does when mortgage rates are adjusted.
The other Canadian banks tend to follow within a day or two, in response to the same trends on bond markets.
This is the second time major banks have cut their mortgage rates since the beginning of August.
The cuts in mortgage rates follow a report Monday that Canadian home sales were down 6.8 per cent in July from a month earlier.
Canadian banks raise or lower their rates for fixed-term mortgages in response to trends on the bond markets.
Variable-rate mortgages go up or down when the banks adjust their prime rates.
Prime rates last changed on July 20, rising by one-quarter of a point after the Bank of Canada increased its policy rate to 0.75 per cent.
-- The Canadian Press

Republished from the Winnipeg Free Press print edition August 17, 2010 B3

Geoff Archambault

Geoff Archambault

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CENTURY 21 Advanced Realty
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