Fixed Mortgage Terms to Lower
Last week the Royal Bank of Canada (RBC) announced that they were lowering the interest rate of their five-year fixed-term mortgage. The rate drop went from 3.89% to 3.74% which represents a .15% cut. This is a result of the Canadian bond yield falling over 50 basis points over the past two months.
This move is likely to prompt similar actions by other major banks in the coming days and has been overdue based on what’s happening in the bond market. A drop like this would save about $30 per month on a $400,000 mortgage.
The Expert Mortgage Brokers of the Coastal Mortgages Team.