Canada’s biggest banks are cutting their posted home mortgage rates, effective Wednesday.
The Royal Bank (TSX:RY) said its new posted rate for a five-year closed mortgage will be 5.59 per cent, down 0.1 percentage points. Meanwhile, the Bank of Montreal (TSX:BMO) said it will cut its five-year fixed rate by 0.2 percentage points to 5.59 per cent.
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.