BUSINESS

BMO, Scotiabank Follow RBC In Cutting Mortgage Rates

01/22/2014 08:38 EST | Updated 01/25/2014 04:01 EST
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UPDATE: Another big Canadian bank has lowered some of its mortgage rates slightly after an initial reduction by the Royal Bank over the weekend.

TD Canada Trust (TSX:TD) now has a posted discounted rate of 3.69 per cent for its five-year fixed mortgages, down from the rate of 3.79 per cent that had been in effect since August.

The bank has also made changes to several of its other closed rates.

TD said in a an email it reviews its rates on an ongoing basis to ``remain competitive and provide our customers with flexible mortgage options and the right rate to meet their individual needs.''

Original story follows

TORONTO -- At least two more big Canadian banks have joined Royal Bank in quieting reducing some of their mortgage rates.

Bank of Montreal and Scotiabank both lowered rates Tuesday although, like the Royal Bank, neither issued a news release announcing the changes.

For example, Scotiabank lowered its five-year closed fixed term mortgage 10 basis points to 3.49 per cent on its website Tuesday, down from 3.59 per cent posted on the site Monday.

BMO, meanwhile, lowered a number of its rates between 10 and 20 basis points, including its posted five-year fixed rate to 3.69 per cent from 3.89 per cent, according to Ratehub.ca.

The change follow a move on the weekend by RBC to quietly lower its rates on several fixed-rate mortgages by 10 basis points, bringing its five-year closed rate to 3.69 per cent.

RBC said in an email Monday that it was only matching lower rates offered by other financial institutions.

"Competitors have been pricing at lower rates for several weeks and this rate change now puts us in line,'' the bank said.

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