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Bank of Montreal reduces many of its residential mortgage rates

The Bank of Montreal (TSX:BMO) announced a 0.1 percentage point decrease in the posted rates for a number of its residential mortgages on Monday.

The Bank of Montreal (TSX:BMO) announced a 0.1 percentage point decrease in the posted rates for a number of its residential mortgages on Monday.

Among the rates being adjusted lower were the bank’s five-year fixed closed rate, which falls to 5.79 per cent.

Also dropping are the bank’s six-month fixed convertible, which falls 0.1 percentage point to 4.75 per cent, along with its two-, three- and four-year fixed closed rates which drop to 3.85 per cent, 4.4 per cent and 5.44 per cent respectively.

Royal Bank (TSX:RY) lowered its benchmark five-year fixed-rate mortgage 0.1 percentage point to 5.79 per cent last week.

The major banks had all made similar moves just over a week earlier, trimming 0.1 percentage points rfom their key mortgages.

Canadian banks raise or lower their rates for fixed-term mortgages in response to trends on the bond markets.

In contrast variable-rate mortgages go up or down when the banks adjust their prime rates.

Prime rates last changed on June 1, rising by one-quarter of a point after the Bank of Canada increased its policy rate from an all-time low to 0.5 per cent.