RBC reduces fixed mortgage rate
January 17, 2019
Some good news has been released for homebuyers looking to take out a mortgage.
Canada’s largest bank, The Royal Bank of Canada (RBC), has cut down one of their mortgage rates, which hints that lower rates may be coming across other banks.
RBC had an advertised rate of 3.89 per cent, but on Wednesday, that rate dropped to 3.74 per cent.
James Laird, president of CanWise Financial mortgage group told Global News that the same five-year rate is also available at TD Bank, though the company doesn’t advertise it.
Now that two banks have a lower mortgage rate, it’s expected that the other three big players—CIBC, BMO, and Scotiabank—will do the same.
“[RBC is] the largest bank in the country and they are the largest mortgage lender in the country,” Laird told Global News. “When they move, it really does, usually forces the other four to match.”
Assuming a borrower is taking out a mortgage on a $400 thousand home with a 20 per cent down payment, they could expect to save $2,285 over five years.
The mortgage industry will heat up with the weather as we approach the spring homebuying season, so it’s typical to see aggressive promotions for lenders to stay competitive.
The variable mortgage rate, on the other hand, has been increased by 0.25%.
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