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Royal Bank drops residential mortgage rates by a tenth of a point at 16:22 on September 5, 2006, EST.
TORONTO (CP) - Most of the country's big banks are cutting long-term mortgage rates by up to a tenth of a point, thanks to the lower cost of borrowing in the bond market.
Royal Bank of Canada (TSX:RY), the biggest bank, announced Tuesday it is reducing the posted rate on three-year to 10-year loans by a tenth of a point. The reductions are effective Wednesday.
The rate on a three-year closed term loan falls to 6.5 per cent, to 6.75 per cent on a five-year loan and to 7.25 per cent on a seven-year loan.
The Bank of Montreal (TSX:BMO) also made changes to its residential mortgage rates, lowering the three-year to 18-year rates a tenth of a point. Effective Wednesday, the two-year rate falls by a fifth of a point, down to 6.40 per cent.
TD Canada Trust (TSX:TD) brought its three-year to six-year closed mortgage rates down by a tenth of a point - to 6.55 per cent and 6.85 per cent - while National Bank of Canada (TSX:NA) reduced its three-year to 10-year rates by 0.10 per cent.
Desjardins Group also reduced its three-year to 10-year rate by a tenth of a point for branches in Quebec and Ontario, bringing its three-year rate to 6.50 per cent, its seven-year rate to 7.25 per cent and the 10-year rate to 7.50 per cent.
The cuts reflect the lower cost of borrowing in the bond market, where banks finance their mortgage loans. |
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