Source: The Canadian Press
CIBC (TSX:CM) has shaved 0.1 percentage points off a number of its residential mortgages, following similar moves on Thursday by several of the major banks.
The move drops the bank’s benchmark posted five-year fixed rate to 5.89%.
RBC Royal Bank (TSX:RY), TD Canada Trust (TSX:TD) and Bank of Montreal (TSX:BMO) all lowered most their posted fixed-term mortgages by one-tenth of a point.
The announcement leaves the banks’ variable-rate mortgages where they were.
Canadian banks raise or lower their rates for fixed-term mortgages in response to trends on the bond markets. In contrast variable-rate mortgages go up or down when the banks adjust their prime rates.
Prime rates last changed on June 1, rising by one-quarter of a point after the Bank of Canada increased its policy rate from an all-time low.