Tuesday , February 7 2023

RBC lowers the fixed mortgage rate



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Mortgage rates are falling for some Canadians.

The Royal Bank of Canada cut the five-year fixed rate from 3.89% to 3.74%. This is due to the fact that market forces have reduced the five-year government bond yields in Canada, which banks are building their fixed mortgages.

Customers from Canadian banks have already negotiated for lower rates.

RBC is the first of the six largest Canadian banks to carry out the public movement, but the rest is expected to follow. The RBC states that, in addition to declining bond yields, other factors have come into play.

Variable mortgage loans were trending higher across the board. This type of mortgage moves with the overnight rate of the Bank of Canada.

A series of hikes by Bank of Canada significantly reduced the gap between variable and fixed mortgage loans in November.

It follows…

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