Big banks in Canda lower their mortgage interest rates, following the similar move of the Royal Bank of (RBC) Canada last weekend. The RBC decreased its rates down to 3. 69 per cent when it removed ten basis point from its five-year fixed rate mortgage rates.
At least, three major financial institutions followed suit a few days after RBC made its announcement. Scotiabank lowered its five-year discount rate from 3.59 per cent to 3.49 percent. Bank of Montreal and TD Canada Trust came next, lowering their rates to 3.69 percent. True North Mortgag continues to hold the lowest mortgage interest rate in the industry at 3. 19 percent.
Some industry observers had predicted this occurrence, as banks tend to follow the lead of RBC. It was also triggered by the decline in government bonds which had removed a total of 26 points off its rates since 2014.
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