The Bank of Montreal (BMO) has revealed it has lowered its five-year
fixed mortgage rate to 2.79 per cent from 2.99 per cent effective immediately for its customers.
Another major lender, TD Canada Trust, is following BMO’s move, announcing it would match the rate this Wednesday.
BMO left its other rates unchanged.
Comparison website RateSupermarket.ca claims the new rates by BMO and TD are the lowest the five biggest Canadian banks have ever posted for a five-year mortgage rate.
"This is historically the lowest a federally regulated lender has gone on a five-year term," Penelope Graham of RateSuperket.ca said. "It's a big deal."
She added that major lenders “have a recent tradition of cutting their rates this time of year”.
"This is the time of year when lenders get competitive about pricing," Graham said. "Speaking from precedent, what we've seen in the past is that the others don't immediately rush to match. But there's nothing to say they won't this year."
The lowest five-year rate in Ontario is at 2.59%, under lenders such as Dominion Lending Centres and True North Mortgages.
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