Royal Bank of Canada has become the first of the major banks to lower its posted interest rate for five-year fixed-term mortgages, a move that has been widely anticipated amid tumbling bond yields.
The bank lowered its featured five-year mortgage rate on Wednesday to 3.74 per cent from 3.89 per cent. Other big banks did not immediately match the rate, but mortgage expert Robert McLister, founder of mortgage-rate comparison website Ratespy.com, said others will move soon.
He said alternative lenders who compete with the big banks have already been lowering their rates for weeks, giving them a slight advantage in the market. Mr. McLister anticipates the major banks will settle their featured five-year fixed rates at about 3.64 per cent in coming days.