Mortgage rates cut

Several of Canada’s big banks are dropping most of their posted mortgage rates, starting Friday.

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.