Several of Canada’s big banks are dropping most of their posted mortgage rates, starting Friday.
RBC Royal Bank (TSX:RY), TD Canada Trust (TSX:TD) and Bank of Montreal (TSX:BMO) say they will shave one-tenth of a point off most their posted fixed-term mortgages.
The announcement leaves the banks’ variable-rate mortgages where they were.
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.