Fixed Mortgage Rates On The Way Back Down

As predicted, many of Canada’s major lenders have lowered some of their fixed rates by as much as 0.2 percentage points. TD Canada Trust, National Bank, Royal Bank and the Bank of Montreal have reduced their 5 and 4 year fixed rates. TD is also lowering their 7 year rate and National Bank will make a cut to their 10 year fixed.

In February, many of Canada’s big banks moved to raise their fixed mortgage rates as investors grew more confident about investing in equity markets and the global economy appeared stronger. However, this week, investors have been jittery over fears that a potential nuclear disaster in Japan could severely derail the global economic recovery.

Fixed mortgage rates, which are closely tied to bond markets, tend to fall when traders shift investment activity from riskier equity assets toward bonds, which are considered safer.

According to their press releases here are the changes Canada’s major banks are making to their rates this week:

Royal Bank of Canada and Bank of Montreal each said Tuesday their fixed five-year closed rates will drop 0.1 of a point to 5.34 per cent.

Four-year rates will fall 0.15 percentage points to 4.99 per cent and seven-year rates will move 0.2 percentage points lower to 6.4 per cent at Royal and 6.35 at BMO.

TD Bank and National Bank say their fixed five-year closed rates will drop 0.1 of a point to 5.34 per cent, effective Thursday.

Four-year rates will fall 0.15 percentage points to 4.99 per cent at all four.

Seven-year rates will move 0.2 percentage points lower to 6.14 at TD, but will be unchanged at National, whose 10-year closed rate will fall 25 basis points to 6.4 per cent.

It should be noted that most of the above rates are the banks posted, or “non-discounted” rates – for instance through First Foundation, a borrower can actually obtain a 5 year fixed rate from TD Canada Trust as low as 4.04%. Even deeper discounts are to be had from some of our other lenders – here’s a recap of our current available rates and be sure to stay tuned as they, too, may drop later this week:

Term Rates

1 Year 2.64%
2 Year 3.20%
3 Year 3.35%
4 Year 3.79%
5 Year 3.74%
7 Year 4.94%
10 Year 5.15%

ARM / Variable 2.20%
Line of Credit 3.50%

With rates falling, and the spring buying season around the corner, it’s a great time to lock in one of these rates by obtaining a pre-approval. Contact one of our licensed mortgage brokers today for more information.


As the company’s first employee, Jennifer has been a Licensed Mortgage Associate since 2004, but her current role is not focused on mortgages. She is the resident blog writer and…

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