05/28/2011 09:57 EDT | Updated 07/28/2011 05:12 EDT

Canadian Banks Cut Mortgage Rates Tenth Of A Point

TORONTO (CP) -- Canada's biggest banks have lowered their mortgage rates.

The Royal Bank, TD Canada Trust, Scotiabank and Bank of Montreal are cutting their house loans by a tenth of a point, effective today.

The cuts reflect lower borrowing rates in the bond market, where banks finance their mortgage loans.

The posted rate for a five-year closed mortgage falls to 5.49 per cent, down a tenth of a point.

Meanwhile, a three-year closed loan drops by the same amount, to 4.45 per cent.