Big banks lowering mortgage rates
Some of Canada’s biggest banks are lowering some of their fixed rate mortgages to counteract the effect of jittery investors moving to bonds, which causes a drop in long-term interest rates.
Investor's nerves have been shaken by the recent tragic events in Japan and fears that a potential nuclear disaster could create serious problems for the Global economy.
Some of the banks making mortgage rate change announcements are TD Bank, CIBC, Desjardins and National Bank, who are dropping their fixed five-year closed rates to 5.34 per cent (effective Thursday 17th March) while Scotiabank’s will be 5.29 per cent. In addition, RBC and BMO made similar announcements earlier in the week.
In February, many of Canada’s big banks moved to raise their fixed mortgage rates as investors grew more confident about investing in equity markets and the global economy appeared stronger.